LTV CORP CITING ROBUST STEEL ORDERS KICKED OFF A NEW ROUND OF STEEL PRICE INCREASES THAT WILL RAISE RATES FOR SECONDQUARTER SHIPMENTS 4 TO 5 THE STEELMAKER'S MOVE REFLECTS CONFIDENCE IN AN IMPROVEMENT IN DEMAND AND THE LIKELIHOOD THE US WILL PLACE STEEP TARIFFS ON FOREIGN STEEL THE INCREASE IF IT HOLDS WOULD BRING BIG GAINS TO UNPROFITABLE US STEELMAKERS A 1 INCREASE IN AVERAGE PRICES RAISES LTV'S OPERATING PROFIT BY 40 MILLION TO 50 MILLION A YEAR SPOKESMEN FOR USX CORP'S US STEEL BETHLEHEM STEEL CORP AND INLAND STEEL INDUSTRIES INC SAID THE COMPANIES WERE REVIEWING LTV'S MOVE MAJOR STEELMAKERS HAVE ALREADY PARTIALLY ENFORCED AN INCREASE THAT TOOK EFFECT EARLIER THIS MONTH THE PRICE INCREASE COMES ON THE EVE OF A PRELIMINARY RULING BY THE COMMERCE DEPARTMENT EXPECTED NEXT TUESDAY OR WEDNESDAY THAT IS LIKELY TO IMPOSE HEFTY DUTIES ON FOREIGN STEEL INCLUDING METAL FROM JAPAN AND CANADA THAT DOMESTIC STEELMAKERS SAY HAS BEEN DUMPED IN THE US FOREIGN STEEL HAS BEEN IN RETREAT BECAUSE OF THE US INDUSTRY'S PRELIMINARY VICTORY LAST NOVEMBER IN ITS TRADE CASES THAT ACCUSED FOREIGN PRODUCERS OF UNFAIR SUBSIDIES IN A MEMO TO ITS SALES STAFF LTV IN CLEVELAND THE NATION'S THIRD LARGEST STEELMAKER SAID IT WOULD RAISE PRICES BY 20 A TON ON ITS HOTROLLED AND COLDROLLED SHEET STEEL EFFECTIVE WITH SHIPMENTS ON APRIL 4 HOWEVER LTV DIDN'T RAISE ITS COATED STEEL SHEET PRICES BECAUSE IT HADN'T BEEN ABLE TO ENFORCE ITS PREVIOUS PRICE INCREASE THE MEMO SAID LTV'S INCOMING ORDER RATE HAS INCREASED 50 IN RECENT MONTHS AND IS NOW MORE THAN DOUBLE YEARAGO LEVELS RESULTING IN LONGER LEAD TIMES FOR VIRTUALLY ALL OF OUR FLATROLLED PRODUCTS LTV ALSO NOTED THAT STEEL PRICES ARE 6 LOWER THAN 1989 LEVELS AND POINTED TO SEVERE FINANCIAL LOSSES NOT ONLY BY LTV STEEL BUT THROUGHOUT THE ENTIRE INTEGRATED STEEL INDUSTRY WHILE CUSTOMERS HAVE SHOT DOWN VARIOUS EFFORTS TO RAISE PRICES OVER THE LAST TWO YEARS OBSERVERS SAID THE LATEST EFFORT LIKE THE INCREASE THAT TOOK PLACE EARLIER THIS MONTH HAS BETTER CHANCES I THINK IT WILL STICK I THINK OTHERS WILL SUPPORT IT AND THE MARKET WILL SUPPORT IT SAID JOHN E LICHTENSTEIN PRESIDENT OF THE CONSULTING FIRM BEDDOWS & CO IN PITTSBURGH MR LICHTENSTEIN SAID ACCELERATING DOMESTIC ORDERS AND THE PROSPECT OF PROTECTION FROM FOREIGN STEEL WILL OUTWEIGH THE POOR OVERSEAS STEEL MARKETS AND THE TENDENCY FOR WEAK US PRODUCERS TO UNDERCUT RIVALS AS IF TO UNDERSCORE LTV'S CLAIMS ABOUT STEELINDUSTRY LOSSES INLAND STEEL THE FIRST INTEGRATED STEELMAKER TO REPORT FOURTHQUARTER EARNINGS ANNOUNCED A LARGERTHANEXPECTED LOSS OF 677 MILLION OR 215 A SHARE THE QUARTER MARKED BY LOW PRICES AND OPERATING TROUBLES CAPPED WHAT THE COMPANY CALLED TWO TRULY DISMAL YEARS OF BACKTOBACK LOSSES INLAND SAID THE QUARTER'S RESULTS WERE HURT BY THE ADOPTION OF A NEW ACCOUNTING STANDARD 28 CENTS A SHARE AN UNFAVORABLE INVENTORY ADJUSTMENT 40 CENTS A SHARE AND A RESERVE FOR ENVIRONMENTAL CLEANUP 23 CENTS A SHARE A YEAR AGO INLAND HAD A LOSS OF 262 MILLION OR 111 A SHARE EXCLUDING A RESTRUCTURING CHARGE INCLUDING THE CHARGE INLAND'S LOSS WAS 1913 MILLION OR 644 A SHARE INLAND ALSO RESTATED ITS 1992 FIRST QUARTER TO INCLUDE A PREVIOUSLY ANNOUNCED NONCASH CHARGE OF 6562 MILLION OR 1999 A SHARE TO REFLECT A NEW ACCOUNTING STANDARD FOR RETIREE HEALTH BENEFITS 9301220014 930122 WORLD MARKETS STOCK PRICES END MIXED IN TOKYO AND FRANKFURT CLOSE NEAR DAY'S HIGHS IN LONDON ON RATE HOPES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS ENDED NARROWLY MIXED IN THIN DEALINGS THURSDAY AND A LATE ARBITRAGEINDUCED RALLY BOOSTED THE NIKKEI INDEX INTO POSITIVE TERRITORY AFTER IT HAD MOVED LOWER FOR MOST OF THE DAY LONDON PRICES ROSE TO FINISH NEAR THEIR HIGHS AS HOPES FOR A BRITISH LENDINGRATE REDUCTION WERE BOOSTED BY WEAK ECONOMIC DATA FRANKFURT SHARES ENDED MIXED AFTER INVESTORS WAITED MOST OF THE SESSION FOR ANY ACTION BY GERMANY'S CENTRAL BANK ON INTEREST RATES WHICH WERE LEFT UNCHANGED IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 28846 POINTS WEDNESDAY ROSE 2850 TO 1653868 ON FRIDAY THE NIKKEI INDEX FELL 16254 POINTS TO CLOSE THE MORNING SESSION AT 1637614 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES COMPARED WITH 2106 MILLION A DAY EARLIER DECLINERS OUTNUMBERED GAINERS 572307 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH FELL 999 POINTS WEDNESDAY DECLINED 142 TO 126466 THE NIKKEI WHICH MARKED AN INTRADAY LOW OF 1637413 SPENT MOST OF THE SESSION BELOW THE 16500 LEVEL WHERE BUYING BY PUBLIC PENSION FUNDS HAD BEEN EXPECTED TO PROVIDE SUPPORT BUT SOME INDEXLINKED BUYING LATE IN THE SESSION QUICKLY LIFTED THE NIKKEI TOWARD THE CLOSE AND IT REACHED A SESSION HIGH OF 1658553 STILL MANY INVESTORS BELIEVE THE MARKET WILL MOVE DOWN TOWARD 16000 SOON AMID INCREASINGLY BEARISH SENTIMENT ABOUT THE OUTLOOK FOR THE JAPANESE ECONOMY THE MARKET IGNORED A REPORT THAT THE RULING LIBERAL DEMOCRATIC PARTY'S TAX POLICY CHIEF KABUN MUTO SUGGESTED AN INCOMETAX CUT OF AS MUCH AS SIX TRILLION YEN 4811 BILLION TOKYO TRADING FOCUSED ON SEVERAL TAKEOVERRELATED ISSUES INCLUDING MINEBEA NIPPON STEEL ADDED 1 YEN TO 286 YEN 229 FOLLOWING NEWS THAT IT IS NEGOTIATING TO BUY THE STRUGGLING NMBS SEMICONDUCTOR SUBSIDIARY OF MINEBEA A BEARINGS MAKER MINEBEA SHARES RECOVERED FINISHING WITH A GAIN OF 3 TO 471 DESPITE REPORTS TOKYO'S STOCK EXCHANGE IS INVESTIGATING THE SHARP INCREASE IN TRADING VOLUME OF MINEBEA SHARES IN THE PREVIOUS TWO DAYS FOR POSSIBLE VIOLATIONS OF INSIDERTRADING RULES TRADING OF NMBS SHARES WAS SUSPENDED ON THE OVERTHECOUNTER MARKET IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX CLIMBED 246 POINTS TO 27733 JUST SHY OF THE DAY'S HIGH OF 27737 THE FT 30STOCK INDEX ROSE 98 POINTS TO 21437 VOLUME WAS 7009 MILLION SHARES COMPARED WITH 5993 MILLION SHARES A DAY EARLIER BRITISH UNEMPLOYMENT AND MANUFACTURING OUTPUT DATA RELEASED EARLY IN THE SESSION INDICATED THAT THE ECONOMY WASN'T RECOVERING FROM RECESSION AS WELL AS HAD BEEN BELIEVED THIS PROMPTED A SURGE IN SHARE PRICES ON EXPECTATIONS THAT THE GOVERNMENT MIGHT HAVE TO EASE MONETARY POLICY TO GIVE THE ECONOMY A BOOST THOUGH THE RISE FOLLOWED SEVERAL SESSIONS IN WHICH STOCK PRICES CONSOLIDATED IT WASN'T PERCEIVED AS A NEW DIRECTION FOR THE MARKET MOREOVER WITH THE BRITISH BUDGET UNDER PREPARATION WITHIN TIGHT CONFINES MANY INVESTORS CONTINUED TO BE CAUTIOUS IN FRANKFURT THE DAX 30STOCK INDEX FELL 121 TO 157367 JUST FRACTIONALLY ABOVE THE INTRADAY LOW OF 157345 OF THE DAX STOCKS 17 ADVANCED AND 10 DECLINED PARTICIPANTS EXPECTED FRANKFURT PRICES TO CONTINUE HEADING DOWN CITING DISAPPOINTMENT ABOUT THE GERMAN GOVERNMENT'S FISCAL PACKAGE PRESENTED TUESDAY AND ABOUT THE GERMAN BUNDESBANK'S DECISION TO LEAVE ITS HIGH INTEREST RATES UNCHANGED THOUGH MOST MARKET PARTICIPANTS HADN'T EXPECTED A RATE CUT THIS WEEK CONTRARIANS HAD GROWN IN NUMBER AND INSTITUTIONAL BUYING THAT HAD OCCURRED IN THE PAST THREE SESSIONS GENERALLY THROUGH THE FUTURES MARKET DRIED UP PARIS SHARES DROPPED MODERATELY ON POOR CORPORATE NEWS AS INTERESTRATE AND ECONOMIC CONCERNS ABATED AMSTERDAM STOCKS ADVANCED WITH SUPPORT FROM A FIRMER DOLLAR MILAN EQUITIES FINISHED MIXED AS PRICES WERE DAMPED BY BOUTS OF PROFITTAKING MADRID STOCKS ROSE SLIGHTLY AFTER GIVING UP MOST GAINS FROM A STRONG RALLY STOCKHOLM PRICES SLUMPED PRESSURED BY WORRIES ABOUT INTEREST RATES AND CORPORATE PERFORMANCES ZURICH PRICES CLIMBED ON DEALERS' BUYING OF BANKING AND INSURANCE SHARES BRUSSELS STOCKS SURGED LIFTED PARTLY BY PROGRAM TRADING SYDNEY STOCK PRICES DRIFTED LOWER THOUGH THEY STOOD UP FAIRLY WELL IN THE FACE OF A DIVE IN THE AUSTRALIAN DOLLAR AND IN BOND PRICES AS WELL AS WALL STREET'S WEAKNESS WEDNESDAY SINGAPORE EQUITIES FIRMED BUOYED BY BLUECHIP BUYING THOUGH TRADING WAS SUBDUED AHEAD OF CHINESE NEW YEAR CELEBRATIONS HONG KONG SHARES ROSE MODERATELY IN THIN TRADING REBOUNDING FROM EARLY LOSSES AS PARTICIPANTS ANTICIPATED A CHINESE NEW YEAR RALLY NEXT WEEK MANILA SHARES JUMPED IN HEAVY TRADING WITH COMMERCIAL AND INDUSTRIAL ISSUES ONCE AGAIN LEADING THE WAY UP AMONG CORPORATE DEVELOPMENTS IN PARIS SOCIETE LYONNAISE DES EAUXDUMEZ PLUNGED 255 FRENCH FRANCS OR 59 TO 410 FRANCS 7559 THE CONSTRUCTION AND MUNICIPALSERVICES CONCERN'S SHARES HAD PLUMMETED AS MUCH AS 93 HITTING 395 FRANCS FOLLOWING ITS SHARPLY REDUCED PROFIT PROJECTION RUMORS OF THE COMING ANNOUNCEMENT SENT THE COMPANY'S STOCK PRICE INTO A TAILSPIN LATE WEDNESDAY PROMPTING A SUSPENSION IN TRADING THE COMPANY LATER ESTIMATED THAT ITS 1992 PROFIT FELL BETWEEN 65 AND 70 FROM THE YEAREARLIER 117 BILLION FRANCS 3153 MILLION BECAUSE OF THE EXTREME WEAKNESS IN THE CONSTRUCTION AND REAL ESTATE SECTORS THE SEVERITY OF THE PROFIT DECLINE WAS UNEXPECTED THE COMPANY PREVIOUSLY SAID IT EXPECTED LAST YEAR'S EARNINGS TO BE COMPARABLE TO THOSE FOR 1991END HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9301220013 930122 LAW LEGAL BEAT JOBLESS NEW LAWYERS SEEK OTHER VENUES BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL SO FAR 200 INQUIRIES TO EMPLOYERS HAVE NETTED SANDRA M BIRNBAUM ONLY A TEMPORARY JOB PROCESSING WORKERCOMPENSATION CLAIMS AT GENERAL MOTORS CORP FOR THE 1992 LAWSCHOOL GRADUATE WHO PASSED THE NEW YORK BAR EXAM WITH FLYING COLORS ON THE FIRST TRY IT'S HARDLY WHAT SHE HAD IN MIND HARD ECONOMIC TIMES AND A GLUT OF YOUNG ATTORNEYS ARE PUSHING THOUSANDS OF 1992 LAWSCHOOL GRADUATES INTO SOME UNLIKELY JOBS AND WITH ROUGHLY ONE OUT OF SEVEN GRADUATES STILL UNEMPLOYED MANY WHO FIND EVEN LAWRELATED WORK ARE LOOKING WELL OUTSIDE THE TRADITIONAL POSSIBILITIES OF LAWFIRM ASSOCIATE GOVERNMENT ATTORNEY OR LAW CLERK MS BIRNBAUM FOR INSTANCE WHO GRADUATED IN THE TOP 15 OF HER CLASS AT THE STATE UNIVERSITY OF NEW YORK AT BUFFALO LAW SCHOOL GAVE UP HOPE OF WORKING FOR THE NEW YORK ATTORNEY GENERAL BECAUSE OF A HIRING FREEZE IN SOME OF THE DEPARTMENT'S OFFICES NOW THE 25YEAROLD IS SEEKING WORK AS A LITIGATOR ANYWHERE IN SOUTHERN NEW YORK STATE MEANWHILE THE TEMPORARY JOBS ARE BARELY MAKING A DENT IN HER 40000PLUS IN SCHOOL LOANS AND 8000 IN CREDITCARD DEBT ALL ACCUMULATED UNDER THE ASSUMPTION THAT SHE WOULD HAVE WORK WHEN SHE GRADUATED IN MAY THE LEGAL MARKET CAREER COUNSELORS SAY ISN'T ANY TOUGHER THAN IT WAS LAST YEAR WHEN THE LAWFIRM RECESSION WAS IN FULL SWING BUT THE MARKET ISN'T ANY FRIENDLIER EITHER NO NATIONAL STATISTICS ARE OUT BUT COUNSELORS AT MEDIUMSIZE NONIVY LEAGUE SCHOOLS SAY ABOUT 10 TO 20 OF THEIR 1992 GRADUATES ARE STILL UNEMPLOYED A FIGURE CONSIDERABLY HIGHER THAN THE HISTORICAL AVERAGE OF 6 TO 8 ONE REASON IS THAT LARGE LAW FIRMS SQUEEZED BY THE SLOW RECOVERY HAVE CLAMPED DOWN ON HIRING TO MAKE THINGS WORSE LAW SCHOOLS HAVE BEEN CHURNING OUT MORE GRADUATES THAN EVER FIGURES AREN'T AVAILABLE FOR THE CLASS OF '92 BUT IN 1991 THE NUMBER JUMPED TO 38800 AS MANY STUDENTS WHO MIGHT OTHERWISE HAVE PURSUED MBAS TURNED TO LAW AS AN ALTERNATIVE TO WALL STREET AS A RESULT GRADUATES ARE HAVING TO LOOK HARDER LONGER AND FARTHER FOR JOBS JOANNE K PUNU ASSISTANT DEAN OF THE UNIVERSITY OF HAWAII LAW SCHOOL HAS SEEN STUDENTS FLY IN FROM THE NEAREST STATES AND EVEN NEW YORK TO RUMMAGE FOR OPENINGS BECAUSE THEY HEARD THE HONOLULU MARKET WAS PROMISING IT WAS MS PUNU SAYS BUT IT'S NOT ANY MORE NEW LAWYERS WHO ARE DETERMINED TO MAKE MONEY OFF THEIR LAW DEGREES ARE ANGLING FOR LEGAL JOBS IN SMALLER CITIES AND AT FAR LOWER SALARIES THAN THEY EXPECTED SOME GRADUATES HAVE FALLEN BACK ON CREATING THEIR OWN JOBS AFTER MONTHS OF FRUITLESS SEARCHING FORMER UNIVERSITY OF GEORGIA CLASSMATES ANNE MARIE COUCH AND HEATHER E MCNAY LAST MONTH HUNG OUT A SHINGLE IN NORCROSS GA JUST NORTH OF ATLANTA THE WHOLE TIME WE WERE LOOKING ANNE MARIE AND I KEPT TALKING ABOUT THAT SIXMONTH MARK SAYS MS MCNAY 26 AT SIX MONTHS MS MCNAY WAS WRITING AGAIN TO PEOPLE WHO HAD REJECTED HER ONLY A FEW MONTHS EARLIER MS COUCH 24 WAS APPLYING FOR JOBS OUT OF STATE EVEN THOUGH HER HUSBAND ATTENDS COLLEGE IN GEORGIA IT WAS THEN THAT MS COUCH MENTIONED ONCE AGAIN THAT SHE HAD ALWAYS WANTED TO START A LAW PRACTICE CONVENIENTLY A DISTANT RELATIVE OF HERS WAS OFFERING HALFPRICE OFFICE SPACE IN EXCHANGE FOR LIGHT LEGAL WORK WITH A 5000 LOAN FROM MS MCNAY'S FATHER COUCH & MCNAY WAS OFF THE GROUND THE FIRM HAS GOTTEN FIVE CASES A CHILDCUSTODY BATTLE A REALESTATE CLOSING A DRIVINGUNDERTHEINFLUENCE CASE AN UNCONTESTED DIVORCE AND A NEGLIGENCE SUIT FOR A PARKINGLOT ACCIDENT I NEVER EXPECTED TO BE DOING THIS BUT I'M REALLY EXCITED SAYS MS MCNAY WHO STUDIED PATENT LAW I GOT DISILLUSIONED WITH PATENT LAW AFTER WORKING IN A LAW FIRM ONE SUMMER YOU DON'T GET TO WORK WITH PEOPLE AND THERE'S SO MUCH OFFICE POLITICS AND THEY SEND WOMEN HOME IF THEY HAVE PANTS ON THE HARDEST PART HASN'T BEEN THE LEGAL WORK BUT GETTING PEOPLE TO PAY FOR IT CLIENTS OWE ABOUT 700 AND THE PARTNERS ARE BARELY BREAKING EVEN EACH MONTH THE TWO HAVE PROMISED EACH OTHER TO STICK IT OUT FOR A YEAR MEANWHILE THEY'VE JUST FINISHED DRAWING UP AN OFFICE MANUAL AT COUCH & MCNAY WOMEN CAN WEAR PANTS DUANE C LARUE RETURNED TO HIS HOMETOWN OF SEATTLE AFTER GRADUATING FROM NOTRE DAME LAW SCHOOL IN MAY HOPING TO GO INTO PRACTICE ON HIS OWN BUT AFTER LOOKING AT THE MARKET HE TURNED HIS BACK ON THE LEGAL FIELD AT KIDDER MR LARUE IS SPECIALIZING IN ESTATE PLANNING SO HIS LAW DEGREE DOESN'T GO TO WASTE ALTHOUGH HE HADN'T PREVIOUSLY CONSIDERED ANY WORK OUTSIDE OF LAW HE SAYS HE WAS DRAWN BY THE AMOUNT OF INDEPENDENCE THE BROKERAGE FIRM OFFERED YOU KNOW I THINK I WOULD HAVE BEEN LOSING MY HAIR IF I'D STARTED MY OWN FIRM HE SAYS A POPULAR ALTERNATIVE FOR MANY REJECTED LAWFIRM APPLICANTS HAS BEEN LOBBYING OR OTHER LEGISLATIVE WORK OTHER RECENT LAWSCHOOL GRADUATES ARE SIMPLY RETURNING TO THE JOB INTERESTS THEY HAD BEFORE ENTERING LAW SCHOOL I GOT SUCKED INTO OH I SHOULD BE A CORPORATE LAWYER OR GO WORK FOR A BIG FIRM' SAYS JENNIFER C JORDAN 29 WHO GRADUATED WITH HONORS FROM INDIANA UNIVERSITY AT BLOOMINGTON SCHOOL OF LAW AFTER REALIZING SHE WOULDN'T FIND A LAWFIRM JOB ANYTIME SOON SHE BEGAN LOOKING INTO SPORTS PROMOTION HER UNDERGRADUATE INTEREST SHE NOW WORKS IN BUFFALO AS MEDIA MANAGER FOR THE WORLD UNIVERSITY GAMES AN OLYMPICSSTYLE EVENT I WASN'T REALLY CERTAIN I WANTED TO WORK IN THE LAW ANYWAY SHE SAYS FRUSTRATED BY THE JOB MARKET MANY 1992 LAW GRADUATES ARE SIMPLY GOING BACK TO SCHOOL NONE OF US WOULD BE DOING THIS IF WE COULD FIND A JOB SAYS BARRY P WILENSKY A 1992 SYRACUSE UNIVERSITY LAWSCHOOL GRADUATE NOW IN BOSTON UNIVERSITY'S ONEYEAR TAX PROGRAM FOR LAWYERS BY THE TIME HE WAS ACCEPTED INTO THE TAX PROGRAM LAST MARCH MR WILENSKY HAD SENT OUT 400 RESUMES AND STILL WAS WITHOUT A JOB OFFER AS LAWSCHOOL GRADUATION NEARED MR WILENSKY NOW HAS A TAXRESEARCH JOB LINED UP AT ACCOUNTING FIRM ARTHUR ANDERSEN & CO WHICH HE WILL START IN JULY AFTER FINISHING AT BOSTON UNIVERSITY BUT MOST PEOPLE IN THE PROGRAM DON'T HAVE JOBS HE SAYS AND I DON'T KNOW THAT I WOULD ENCOURAGE ANYONE TO GO TO LAW SCHOOL NOWADAYS ONE OF MR WILENSKY'S FRIENDS A 1992 GRADUATE FROM THE NEW ENGLAND SCHOOL OF LAW IN BOSTON WAS SELLING CLOTHES AT AN ANN TAYLOR SHOP UNTIL A FEW WEEKS AGO WHEN SHE FINALLY LANDED A LAWFIRM JOB MR WILENSKY SAYS MANY OF HIS LAWYER FRIENDS ARE TOO EMBARRASSED TO WORK OUTSIDE THE LEGAL FIELD BUT ONCE THE STUDENT LOANS COME DUE I IMAGINE THEY WOULD JUST DO ANYTHING HE ADDS OTHERS SUCH AS MS BIRNBAUM THE LAWYER DOING TEMP WORK AT GM ALREADY HAVE REACHED THAT POINT THERE'S ONLY SO MUCH MONEY YOU CAN BORROW FROM YOUR PARENTS SHE SAYS SHE HELD A CREDITCARDCUTTING PARTY EARLIER THIS MONTH SLICING UP ALL BUT THREE OF HER 15 CHARGE CARDS SHE TELLS THE TEMP AGENCY SHE WON'T TAKE JOBS FOR LESS THAN 6 AN HOUR TO LOOK FOR JOB LEADS AND TO NOT LOSE TOUCH WITH HER LEGAL TRAINING MS BIRNBAUM THIS WEEK BEGAN WORKING WITH A VOLUNTEERLAWYERS PROJECT IN BUFFALO I KNOW THAT GIVEN THE OPPORTUNITY I WOULD BE A GOOD LAWYER SHE SAYS I'M AGGRESSIVE AND I'M SMART AND I JUST HAVEN'T BEEN GIVEN THE CHANCE THERE'S REALLY NOTHING ELSE THAT INTERESTS ME IT'S TOUGH A US APPEALS COURT REVERSED A BANKRUPTCYCOURT RULING AGAINST FORMER CONTINENTAL AIRLINES PILOTS PARTLY BECAUSE THE BANKRUPTCY JUDGE DIDN'T REMOVE HIMSELF FROM THE CASE FORMER BANKRUPTCY COURT JUDGE T GLOVER ROBERTS RULED IN 1986 THAT THE PILOTS DIDN'T DESERVE FURLOUGH PAY FROM CONTINENTAL'S BANKRUPTCY ESTATE SEVERAL WEEKS LATER HE STEPPED DOWN TO BECOME A PARTNER IN THE LAW FIRM THAT REPRESENTED CONTINENTAL THE APPEALS COURT IN NEW ORLEANS HAD RULED THAT THE JUDGE SHOULD HAVE REMOVED HIMSELF FROM THE CASE BECAUSE OF THE APPEARANCE OF PARTIALITY BUT THE APPEALS COURT HADN'T PREVIOUSLY REVERSED ANY OF HIS RULINGS BECAUSE IT HAD FOUND THAT ANY HARM TO EMPLOYEES COULD BE CORRECTED BY OTHER COURTS BUT THE FIFTH US CIRCUIT COURT OF APPEALS SAID THE RISK OF INJUSTICE IS GREATER IN THE FURLOUGHPAY DECISION THE COURT SAID THE JUDGE SHOULD HAVE FOUND THAT THE PILOTS DESERVED THE FURLOUGH PAY MR ROBERTS WHO IS A PARTNER IN THE DALLAS OFFICE OF HOUSTONBASED LAW FIRM SHEINFELD MALEY & KAY SAID HE HADN'T SEEN THE RULING SO HE COULDN'T DISCUSS IT IN THE PAST HE HAS SAID HE DIDN'T TALK TO SHEINFELD MALEY ABOUT A JOB UNTIL SEVERAL WEEKS AFTER APPROVING CONTINENTAL'S BANKRUPTCY PLAN THE APPEALS COURT'S RULING WON'T BENEFIT MOST PILOTS WHO SETTLED THEIR CLAIMS WITH CONTINENTAL IN JUNE BUT MARTY C HARPER A PHOENIX ATTORNEY FOR THE PILOTS SAID AT LEAST A FEW HUNDRED CAN STILL SEEK MONEY WHO'S NEWS LAWRENCE S EAGLEBURGER FORMERLY SECRETARY OF STATE IN THE BUSH ADMINISTRATION HAS JOINED LAW FIRM BAKER WORTHINGTON CROSSLEY STANSBERRY & WOOLF AS A FOREIGNPOLICY ADVISER MR EAGLEBURGER WHO ISN'T A LAWYER WILL ADVISE THE FIRM'S US CLIENTS ON FOREIGN BUSINESS VENTURES FORMER SEN HOWARD BAKER IS HEAD OF THE KNOXVILLE TENN FIRM WALTER B MCCORMICK JR FORMER GENERAL COUNSEL OF THE DEPARTMENT OF TRANSPORTATION WILL JOIN ST LOUIS LAW FIRM BRYAN CAVE AS A PARTNER HE WILL PRACTICE OUT OF THE 350LAWYER FIRM'S WASHINGTON OFFICE MAINLY IN THE AREAS OF COMMUNICATION AND TRANSPORTATION HARRY J WEISS FORMER ASSOCIATE DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION JOINED LAW FIRM ARNOLD & PORTER IN WASHINGTON HE WILL FOCUS ON SECURITIES LAW AND CORPORATE COMPLIANCE SANDRA M BIRNBAUM A 1992 LAWSCHOOL GRADUATE OPENS MAIL IN A WORKERCOMPENSATION OFFICE OF GENERAL MOTORS CORP SHE DOESN'T PROCESS CLAIMS AS REPORTED IN FRIDAY'S LEGAL BEAT COLUMN 9301220011 930122 BASS REPORTS GAINS IN BREWING AND PUBS FOR CHRISTMAS PERIOD SPECIAL TO THE WALL STREET JOURNAL LONDON BASS PLC SAID IT SAW A GENERAL IMPROVEMENT IN BREWING AND PUB BUSINESS OVER THE CHRISTMAS PERIOD BUT WAS CAUTIOUS ABOUT HOW LONG THAT MIGHT LAST BASS CHAIRMAN IAN PROSSER ALSO TOLD SHAREHOLDERS AT THE BREWING HOTEL AND LEISURE GROUP'S ANNUAL MEETING THAT SOFTDRINK VOLUMES ARE DOWN MARGINALLY IN THE FACE OF COMPETITION FROM LOWCOST PRODUCTS WHILE TURNOVER AND MARGINS ARE IMPROVING AT ITS BETTING SHOP UNIT DESPITE TOUGH ECONOMIC CONDITIONS TURNING TO THE GROUP'S HOTEL DIVISION WHICH INCLUDES HOLIDAY INNS MR PROSSER SAID OCCUPANCY RATES HAVE RISEN IN THE US BUT ROOM RATES HAVE SEEN LITTLE GROWTH HE ACKNOWLEDGED THOUGH THAT EUROPEAN HOTELS HAVE FACED TRADING PRESSURES ESPECIALLY IN THE BENELUX COUNTRIES FRANCE AND ITALY MR PROSSER SAID GERMAN HOTEL REVENUE HAS BEEN MAINTAINED BUT COST PRESSURE HAS ERODED PROFIT MARGINS LOOKING AHEAD THE CHAIRMAN SAID THE STRENGTHENING OF THE DOLLAR AGAINST STERLING WILL BENEFIT HOLIDAY INN DOLLAR EARNINGS BUT TO A LESSER EXTENT WILL ALSO INCREASE OUR INTEREST COST AS WILL THE REDUCTION IN STERLING DEPOSIT RATES HE DIDN'T QUANTIFY HIS COMMENTS SAYING THAT IN LIGHT OF THE VOLATILITY OF TRADING DURING THE FIRST QUARTER IT IS FAR TOO EARLY TO DRAW CONCLUSIONS ABOUT THE OUTLOOK FOR THE YEAR AS A WHOLE BASS HAD PRETAX PROFIT OF 501 MILLION 7733 MILLION IN THE YEAR ENDED SEPT 30 1992 ON SALES OF 431 BILLION ANALYSTS' PRETAX PROFIT FORECASTS FOR THE CURRENT FINANCIAL YEAR GENERALLY HAVE RANGED BETWEEN 575 MILLION AND 625 MILLION 9301220010 930122 SENATE SUPPORT FOR ZOE BAIRD IS PRECARIOUS ACTION FROM WHITE HOUSE IS SEEN AS ONLY CHANCE FOR NOMINEE'S APPROVAL BY PAUL M BARRETT AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE NOMINATION OF ZOE BAIRD TO BE ATTORNEY GENERAL FELL INTO SERIOUS PERIL AS OPPOSITION AMONG WOMEN AND SENATE DEMOCRATS MOUNTED AND THE WHITE HOUSE OFFERED HER ONLY TEPID SUPPORT MS BAIRD YESTERDAY REJECTED THE URGING OF SOME SENATE DEMOCRATS THAT SHE SAVE PRESIDENT CLINTON FURTHER EMBARRASSMENT BY STEPPING ASIDE FOR HAVING KNOWINGLY HIRED TWO ILLEGAL ALIENS AS HOUSEHOLD SERVANTS IN 1990 AFTER THE NOMINEE FACED A SECOND DAY OF QUESTIONING ABOUT HER VIOLATIONS OF IMMIGRATION AND TAX LAW THE PRESIDENT'S SPOKESWOMAN GAVE A QUALIFIED REAFFIRMATION OF MR CLINTON'S SUPPORT FOR THE FIRST WOMAN EVER NOMINATED TO BE THE NATION'S TOP LAW ENFORCEMENT OFFICER WHITE HOUSE PRESS SECRETARY DEE DEE MYERS SAID LAST NIGHT AT THIS POINT THE PRESIDENT IS STANDING BEHIND HER SHE DENIED ANY KNOWLEDGE OF REPORTS THAT SENATORS MAY HAVE CALLED MR CLINTON ASKING THAT MS BAIRD'S NOMINATION BE WITHDRAWN BUT SHE DID SAY IT IS A SITUATION THAT WE ARE PAYING CLOSE ATTENTION TO OBVIOUSLY SENATE STAFF MEMBERS AND CLINTON TRANSITION OFFICIALS WORKING ON THE BAIRD NOMINATION ACKNOWLEDGED THAT WITHOUT STRONG LOBBYING BY THE PRESIDENT HIMSELF MS BAIRD'S NOMINATION WOULD FAIL BUT AS DEMOCRATIC SUPPORT DETERIORATED THROUGH THE DAY IT BECAME CLEAR THAT EVEN WITH A PUSH FROM MR CLINTON MS BAIRD MIGHT BE DEFEATED PRIVATELY SOME TOP WHITE HOUSE OFFICIALS WERE DESPONDENT OVER MS BAIRD'S SITUATION AND WERE ESPECIALLY STUNG BY THE OPPOSITION OF FORMER DEMOCRATIC REP BARBARA JORDAN OF TEXAS AND REPUBLICAN SEN NANCY KASSEBAUM OF KANSAS THE SPEED OF THE NOMINATION'S UNRAVELING WAS ACCELERATED BY THE CONTINUING BARRAGE OF TELEPHONE CALLS TO SENATORS CRITICIZING THE NOMINATION THE CAPITOL HILL SWITCHBOARD WAS JAMMED AND AIDES SAID THAT IN SOME OFFICES IT WAS DIFFICULT TO FIND OPEN LINES TO MAKE OUTGOING CALLS MANY PEOPLE APPARENTLY HAVEN'T BEEN SWAYED BY MS BAIRD'S ASSERTION THAT WHEN SHE HIRED THE TWO HOUSEHOLD WORKERS SHE WAS A BUSY MOTHER FOCUSING ON OBTAINING GOOD CHILD CARE NOT AN ATTORNEY GENERALDESIGNATE CONTEMPLATING SENATE CONFIRMATION JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL SAID THE HEARINGS WILL CONTINUE TODAY WITH TESTIMONY FROM MS BAIRD'S HUSBAND PAUL GEWIRTZ A LAW PROFESSOR AT YALE UNIVERSITY MS BAIRD A 40YEAROLD CORPORATE LAWYER REITERATED YESTERDAY THAT WHILE SHE ACCEPTED BLAME FOR ILLEGALLY EMPLOYING THE TWO IT WAS HER HUSBAND WHO HANDLED THE HIRING AND SOUGHT LEGAL ADVICE ABOUT THE MATTER SENATE DEMOCRATS RESEMBLED A NERVOUS HERD AS THE ADMINISTRATION APPEARED TO BE ASSESSING ITS OPTIONS RATHER THAN RUSHING TO A CONFRONTATION THAT COULD COST THE NEW PRESIDENT PRECIOUS POLITICAL CAPITAL DEMOCRATS ARE CONSCIOUS TOO THAT THEY RISK APPEARING WEAK GOING INTO A SESSION WHEN THEY HAVE PLEDGED TO TACKLE FAR MORE CONTROVERSIAL LEGISLATIVE ISSUES NO QUESTION IT'S A DIFFICULT NOMINATION SAID NEBRASKA SEN BOB KERREY BUT IF WE'RE GOING TO CUT AND RUN WHEN WE GET A COUPLE OF HUNDRED PHONE CALLS WE'RE NEVER GOING TO GET ANYTHING DONE ON THE TOUGH ISSUES OF HEALTH CARE AND THE DEFICIT SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE STEADIED SOME NERVES AT A PARTY CAUCUS YESTERDAY BUT MS BAIRD APPEARED TO BE ISOLATED WITHOUT A CLEAR CONSTITUENCY OTHER THAN HER CLOSEST SUPPORTERS FROM CONNECTICUT AND THE TENTATIVE BACKING OF THE WHITE HOUSE WOMEN ARE DIVIDED OVER HER NOMINATION MAKING IT EASIER FOR MALE SENATORS TO OPPOSE IT AND UNLIKE COMMERCE SECRETARY RON BROWN WHO HELPED RAISE MONEY FOR MANY DEMOCRATS OVER THE YEARS MS BAIRD HAS NO POWERFUL ALLIES SEN KASSEBAUM CAUSED A STIR BY CIRCULATING A STATEMENT YESTERDAY MORNING OPPOSING MS BAIRD'S CONFIRMATION WHILE DEMOCRATIC SENS BARBARA MIKULSKI OF MARYLAND AND DIANNE FEINSTEIN OF CALIFORNIA BOTH EXPRESSED RESERVATIONS ABOUT THE NOMINATION IN THE CAUCUS BY LATE YESTERDAY FOUR DEMOCRATS HAD URGED THAT MS BAIRD WITHDRAW THEY WERE SENS DAVID BOREN OF OKLAHOMA AND JOHN BREAUX OF LOUISIANA BOTH CLOSE POLITICAL ALLIES OF MR CLINTON AS WELL AS SENS BENNETT JOHNSTON OF LOUISIANA AND RICHARD SHELBY OF ALABAMA MR BREAUX WHO HEADS THE MODERATETOCONSERVATIVE DEMOCRATIC LEADERSHIP COUNCIL SAID THAT APART FROM THE ILLEGAL ALIEN ISSUE HE WAS TROUBLED BY MS BAIRD'S LACK OF EXPERIENCE REGARDING THE CRIMINAL JUSTICE SYSTEM THE PRESIDENT HE SAID CAN DO BETTER FOUR REPUBLICANS IN ADDITION TO SEN KASSEBAUM SAID THEY WOULD VOTE AGAINST THE NOMINATION JUDICIARY COMMITTEE MEMBERS ALAN SIMPSON OF WYOMING AND LARRY PRESSLER OF SOUTH DAKOTA AS WELL AS LARRY CRAIG OF IDAHO AND SLADE GORTON OF WASHINGTON ARIZONA SEN DENNIS DECONCINI SAID THAT SEVERAL DEMOCRATS ON THE COMMITTEE ARE NOT COMMITTED FOR HER INCLUDING ME HE DESCRIBED MS BAIRD'S CHANCES AS LITTLE BETTER THAN 5050 AND PROBABLY GOING DOWN MEXICANBORDER STATES SUCH AS ARIZONA ARE MOST SENSITIVE TO THE IMMIGRATION ISSUE IN THE MIDWEST THE NOMINATION IS INTERWOVEN WITH CONCERN ABOUT LOST JOBS AT HOME AND RESENTMENT OF LAWBREAKING BY THE WEALTHY MY READ IS BAIRD WILL PROBABLY WITHDRAW SAID REPUBLICAN SEN CHARLES GRASSLEY WHO CITED A 73 UNEMPLOYMENT RATE IN HIS HOME STATE OF IOWA EVEN MODERATE REPUBLICANS WERE COOL TO MS BAIRD IT'S TOUGH GOING SAID GOP SEN JOHN CHAFEE OF RHODE ISLAND I DON'T THINK SHE'S GOING TO MAKE IT UTAH SEN ORRIN HATCH THE COMMITTEE'S RANKING REPUBLICAN SAID THAT ALTHOUGH CALLS TO HIS OFFICE HAVE BEEN HEAVILY AGAINST MS BAIRD HE WOULD CONTINUE TO SUPPORT HER BECAUSE SHE HAS APOLOGIZED FOR HER WRONGDOING AND OTHERWISE HAS AN IMPRESSIVE PROFESSIONAL BACKGROUND AFTER DISCLOSING THE HOUSEHOLDHIRING MATTER TO CLINTON TRANSITION OFFICIALS MS BAIRD AND HER HUSBAND PAID 12000 IN BACK TAXES INTEREST AND PENALTIES AS WELL AS A 2900 CIVIL FINE TO THE IMMIGRATION AND NATURALIZATION SERVICE AS ATTORNEY GENERAL MS BAIRD WOULD SUPERVISE THE INS WHICH IS AN ARM OF THE JUSTICE DEPARTMENT MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9301220009 930122 MARKETING & MEDIA CONRAD BLACK APPEARS TO RULE OUT MOVES TO CONTROL SOUTHAM TORONTO CANADIAN MEDIA BARON CONRAD BLACK APPEARS TO HAVE RULED OUT AT LEAST FOR THE TIME BEING ANY ATTEMPT TO GAIN A CONTROLLING STAKE IN SOUTHAM INC A PRINTING AND PUBLISHING CONCERN THAT CONTROLS MANY OF CANADA'S BESTKNOWN NEWSPAPERS HOLLINGER INC THROUGH WHICH MR BLACK CONTROLS A STRING OF NEWSPAPERS IN THE US AND CANADA AND SOUTHAM SAID THEY HAVE REACHED AN AGREEMENT WHEREBY HOLLINGER WON'T SEEK TO BOOST ITS 226 INTEREST IN SOUTHAM BY MORE THAN THE PERMITTED 1 UNTIL A SHAREHOLDER RIGHTS' AGREEMENT EXPIRES IN 1995 IN RETURN SOUTHAM BASED IN TORONTO WILL GIVE MR BLACK AND TWO OTHER HOLLINGER REPRESENTATIVES SEATS ON ITS 17MEMBER BOARD HOLLINGER ACQUIRED A 226 STAKE IN SOUTHAM LAST YEAR FROM TORSTAR CORP FOR 259 MILLION CANADIAN DOLLARS US2023 MILLION THAT MAKES MR BLACK INDIRECTLY THE LARGEST SHAREHOLDER OF SOUTHAM AND GIVES HIM AN INTEREST IN DAILY PAPERS PUBLISHED IN SUCH CANADIAN CITIES AS OTTAWA MONTREAL AND VANCOUVER FOLLOWING THE ANNOUNCEMENT OF THE ACQUISITION A NUMBER OF SOUTHAM SHAREHOLDERS APPROACHED BROKERS EAGER TO TENDER THEIR SHARES TO ANY FOLLOWUP OFFER MR BLACK AND HOLLINGER MIGHT MAKE AT THE SAME ATTRACTIVE PRICE OF C1810 A SHARE RUMORS SPREAD WITHIN THE FINANCIAL COMMUNITY THAT MR BLACK NOT KNOWN FOR BEING A PASSIVE MINORITY SHAREHOLDER WOULD LAUNCH A TAKEOVER BID OF SOME FORM UNDER THE TERMS OF THE SHAREHOLDERS' RIGHTS AGREEMENT HOLLINGER COULD STILL MAKE A PERMITTED BID FOR ALL THE SHARES OF SOUTHAM IT DOESN'T ALREADY OWN HOLLINGER SAID MR BLACK AND DAVID RADLER PRESIDENT OF HOLLINGER WILL BE APPOINTED TO SOUTHAM'S BOARD AS SOON AS POSSIBLE THE COMPANY DIDN'T NAME THE THIRD HOLLINGER REPRESENTATIVE 9301220008 930122 INTERNATIONAL SHIP SPEWS OIL AFTER COLLISION OFF INDONESIA DANISH VESSEL CATCHES FIRE ACCIDENT IS THIRD MAJOR TANKER SPILL IN WEEKS BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON A DANISH OIL TANKER CARRYING 78 MILLION GALLONS OF CRUDE CAUGHT FIRE AND BEGAN TO SPEW OIL INTO THE ANDAMAN SEA AFTER COLLIDING WITH AN EMPTY TANKER OFF THE NORTHERN COAST OF INDONESIA THURSDAY THE ACCIDENT WAS THE THIRD MAJOR MISHAP INVOLVING OIL TANKERS SINCE DEC 3 THERE WERE NO INJURIES AND THE 24PERSON CREW OF THE DANISH SHIP WAS EVACUATED SALVAGE AND RECOVERY TUGS WERE RUSHING TO THE SCENE THOUGH THE EXTENT OF DAMAGE TO 260000TON MAERSK NAVIGATOR WASN'T IMMEDIATELY KNOWN AT LEAST ONE OF ITS CARGO TANKS WAS BELIEVED TO HAVE RUPTURED AND SOME OIL HAS SPILLED INTO THE SEA AND IS ON FIRE SAID A STATEMENT ISSUED IN SINGAPORE BY AP MOLLER CO OF COPENHAGEN THE VESSEL'S OWNER SHOULD THE SHIP LOSE ALL OF ITS CARGO IT WOULD RANK AS THE THIRDLARGEST TANKER SPILL IN HISTORY LATE THURSDAY THE NAVIGATOR WAS ADRIFT IN CALM SEAS ABOUT 60 MILES OFF THE NORTHEAST COAST OF SUMATRA AN INDONESIAN ISLAND STILL REGIONAL OIL SPILL OFFICIALS WORRIED THAT ANY MASSIVE SLICK WAS WITHIN EASY DRIFTING DISTANCE OF THE TOURISTS COASTS OF SOUTHERN THAILAND AND THE MALAY PENINSULA THE SUPERTANKER BUILT IN SOUTH KOREA IN 1989 WAS EN ROUTE FROM OMAN TO JAPAN WHEN THE ACCIDENT OCCURRED THE OIL ON BOARD IS OWNED BY GENERAL SEKIYU A JAPANESE COMPANY ITS ROUTE IS A COMMON ONE USED BY TANKERS TRAVELING THROUGH THE STRAIT OF MALACCA TO THE SOUTH THE WATERWAY BETWEEN SUMATRA AND THE MALAY PENINSULA PROVIDES A SHORTCUT BETWEEN THE SOUTH CHINA SEA AND THE INDIAN OCEAN HOW THE COLLISION OCCURRED WASN'T IMMEDIATELY CLEAR THE SECOND SHIP INVOLVED THE JAPANESEREGISTERED SANKO HONOUR APPARENTLY SUFFERED ONLY MODEST DAMAGE IT BRIEFLY CAUGHT FIRE AFTER THE ACCIDENT BUT THE BLAZE WAS QUICKLY BROUGHT UNDER CONTROL BY THE CREW ON DEC 3 THE TANKER AEGEAN SEA RAN AGROUND AND EXPLODED OFF THE COAST OF SPAIN IT SPILLED ALL OF ITS 23 MILLION GALLONS OF CRUDE TWO WEEKS AGO THE USOWNED LIBERIANREGISTERED BRAER LOST POWER OFF THE COAST OF THE SHETLAND ISLANDS AND WAS DRIVEN AGROUND BY HURRICANE SEAS IT EVENTUALLY BROKE APART DUMPING ALL OF ITS 22MILLIONGALLON CARGO A LESS SIGNIFICANT SPILL ALSO OCCURRED DEC 16 OFF ESTONIA BUT THE RELATIVELY SMALL LEAK WASN'T CONSIDERED A MAJOR EVENT BUT THE AMOUNT OF OIL LOST ISN'T NECESSARILY A BAROMETER OF ENVIRONMENTAL DAMAGE MOST OF THE AEGEAN SEA'S OIL BURNED AFTER THE SHIP CAUGHT FIRE AND EXPLODED SPARING MUCH OF THE TOURISTDEPENDENT COASTLINE AND THE LIGHT CRUDE FROM THE BRAER WAS LARGELY WASHED AWAY BY SIXDAYS OF FIERCE WINDS AND SEAS LEAVING LITTLE SHORELINE RESIDUE BY CONTRAST THE 1989 WRECK OF THE EXXON VALDEZ THOUGH IT SPILLED 11 MILLION GALLONS OF OIL TURNED INTO A 25 BILLION CLEANUP CATASTROPHE AFTER CRUDE FOULED HUNDREDS OF MILES OF ALASKAN BEACHES THE LARGEST OIL SPILLS IN HISTORY HAVEN'T BEEN THE RESULT OF TANKERS THE 1991 GULF WAR BROUGHT A 250MILLIONGALLON GIANT SPILL LARGELY UNLEASHED BY THE DESTRUCTION OF KUWAIT'S MAIN OIL TERMINAL BY THE RETREATING IRAQI ARMY AND IN MEXICO A BLOWOUT AT THE IXTOC OFFSHORE OIL WELL SENT AROUND 180 MILLION GALLONS GUSHING INTO THE GULF OF MEXICO FROM JUNE 1979 UNTIL MARCH 1980 9301220007 930122 ECONOMY ECONOMIC GAINS ACROSS MUCH OF US FOUND IN SURVEY BY FED DISTRICT BANKS BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THERE IS CONTINUED IMPROVEMENT IN ECONOMIC CONDITIONS ACROSS MUCH OF THE COUNTRY ACCORDING TO A NEW SURVEY OF THE 12 FEDERAL RESERVE DISTRICT BANKS MUCH OF THE INCREASE IN ECONOMIC ACTIVITY HASN'T TRANSLATED INTO JOB GROWTH THE REPORT NOTES BUT ON THE POSITIVE SIDE BUSINESS LEADERS SAID THE ECONOMY'S NEW MOMENTUM HASN'T CAUSED PRICES TO JUMP EITHER THE FED'S SURVEY CONDUCTED IN DECEMBER AND IN THE FIRST HALF OF JANUARY IS CONSISTENT WITH RECENT GOVERNMENT DATA ON INDUSTRIAL PRODUCTION RETAIL SALES EMPLOYMENT AND INFLATION AFTER A ROUGH SUMMER THE MANUFACTURING SECTOR APPEARS TO HAVE STABILIZED IN MUCH OF THE COUNTRY WITH SOME DISTRICTS REPORTING MODERATE INCREASES IN ACTIVITY MANY MERCHANTS SAID HOLIDAY SALES EXCEEDED EXPECTATIONS AND THAT THEY DIDN'T NEED TO RELY HEAVILY ON PROMOTIONS AND GIMMICKS POPULAR CHRISTMAS ITEMS INCLUDED JEWELRY FURNITURE RUGS AND ELECTRONIC GOODS ALTHOUGH COMMERCIAL REAL ESTATE IS STILL PUTTING A DRAG ON ECONOMIC ACTIVITY IN MANY REGIONS RESIDENTIAL REAL ESTATE IS SAID TO BE IMPROVING CALIFORNIA CONTINUES TO BE ONE OF THE WEAK SPOTS IN THE NATION THE SAN FRANCISCO RESERVE DISTRICT REPORTED THAT WEAKNESS IN CALIFORNIA CONTINUES TO OFFSET MODERATE GROWTH IN OTHER WESTERN STATES HERE IS A ROUNDUP OF THE 12 FEDERAL RESERVE DISTRICTS BOSTON BUSINESS LEADERS SAID THAT ECONOMIC ACTIVITY WAS INCREASING VERY MODESTLY AT THE END OF THE YEAR SALES GAINS DURING THE CHRISTMAS HOLIDAYS RANGED FROM SUBSTANTIAL TO NONE THE REPORT SAID MERCHANTS WHO SAW A BIG RISE IN SALES GRANTED WAGE INCREASES OR ADDED PERMANENT EMPLOYEES MOST MANUFACTURERS BELIEVED THAT BUSINESS HAS IMPROVED BUT ORDERS FOR AIRCRAFT PARTS LARGE ELECTRONICS SYSTEMS AND GOVERNMENT WORK WERE SOFTENING IN THE RESIDENTIAL HOUSING MARKET SINGLEFAMILY HOME PRICES WERE FLAT AND CONDOMINIUM PRICES MAY STILL BE FALLING NEW YORK THE LABOR MARKET PICTURE IN NEW YORK AND NEW JERSEY CONTINUED TO BE ERRATIC IN DECEMBER NEW JERSEY'S UNEMPLOYMENT RATE FELL WHILE NEW YORK'S CLIMBED HOME BUILDING ACTIVITY HAS BEEN RELATIVELY SLOW BUT BUILDING MAY STEP UP AS HOMES DAMAGED BY A SEVERE DECEMBER STORM ARE REBUILT OR RESTORED DEMAND FOR COMMERCIAL AND INDUSTRIAL LOANS IMPROVED SLIGHTLY THE REPORT SAID PHILADELPHIA MANUFACTURERS IN THIS DISTRICT HAVE NOTED CONTINUING GAINS IN SHIPMENTS AND NEW ORDERS THEY ALSO SAID LEVELS OF UNFILLED ORDERS HAVE BEEN RISING BANKERS SAID LOAN VOLUMES OUTSTANDING WERE RISING MODESTLY MAINLY BECAUSE OF AN INCREASE IN CONSUMER LENDING MORTGAGE REFINANCINGS HAVE SLOWED DESPITE GOOD HOLIDAY RESULTS RETAILERS DON'T EXPECT STRONG GROWTH IN THE FIRST HALF OF 1993 CLEVELAND MAKERS OF STEEL AUTOS AND CAPITAL GOODS SAID THEY BELIEVED THE FIRST QUARTER OF THIS YEAR WILL BE STRONGER THAN THE LAST QUARTER OF 1992 THE BIG THREE AUTO MAKERS SEEMED TO BE FARING BETTER THAN THEIR JAPANESE COMPETITORS SEVERAL DEALERS SAID THAT CONSUMERS ARE NOW LEANING TOWARD BUYING CARS WITH MORE OPTIONS AND HIGHEND MODELS CAPITALGOODS MAKERS SAID BUSINESS HAS BEEN RISING BUT THE INCREASE HAS BEEN UNEVEN BECAUSE UNCERTAINTY OVER A PROPOSED INVESTMENT TAX CREDIT HAS LED TO POSTPONEMENTS AND CUTBACKS IN SOME ORDERS RICHMOND RETAILERS HERE ARE MORE OPTIMISTIC THAN THEIR COUNTERPARTS IN MANY OTHER REGIONS ABOUT THEIR PROSPECTS FOR THE NEXT SIX MONTHS MERCHANTS EXPECT MORE SHOPPERS AND HENCE RISING SALES WAGES AND PRICES MANY MANUFACTURERS LISTED HEALTHCARE COSTS AND GOVERNMENT REGULATIONS AS THEIR MOST PRESSING PROBLEMS BUILDING PERMITS HAVE STRENGTHENED IN GREENSBORO NC WHERE THE MARKET HAS BEEN WEAK FOR THE PAST FEW YEARS IN SOME AREAS COMMERCIALBUILDING VACANCY RATES ARE DROPPING QUICKLY THE REPORT SAID ATLANTA THIS DISTRICT IS ONE OF THE MOST UPBEAT REGIONS OF THE COUNTRY RETAILERS ENJOYED SIGNIFICANT INCREASES IN HOLIDAY SALES REAL ESTATE AGENTS AND HOME BUILDERS SAID THE SINGLEFAMILY HOUSING MARKET IS CONTINUING TO IMPROVE BANKERS SAID CONSUMER AND BUSINESSLOAN DEMAND IS PICKING UP ALONG WITH CONFIDENCE CHICAGO MERCHANTS SAID SALES HELD UP EVEN AFTER CHRISTMAS AN ASSOCIATION OF SMALL RETAILERS IN MICHIGAN STATED THAT OUR PEOPLE ARE GENERALLY EUPHORIC A SURVEY OF PURCHASING MANAGERS PUT MANUFACTURING AT ITS HIGHEST LEVEL SINCE THE START OF THE RECESSION EMPLOYERS THOUGH STILL CITE RISING HEALTH CARE COSTS AS A FACTOR IN RESTRAINING HIRING AND CONTRIBUTING TO LAYOFFS ST LOUIS MANUFACTURERS IN THIS DISTRICT HAVE BEEN COMPLAINING ABOUT A LACK OF QUALIFIED WORKERS NONRESIDENTIAL CONSTRUCTION IS ON THE RISE IN ST LOUIS WITH PUBLIC WORKS PROJECTS AND NEW FACTORIES ACCOUNTING FOR THE GROWTH AUTO DEALERS SAID SALES HAVE BEEN STRONG ALTHOUGH IN ARKANSAS MANY DEALERS CALLED THE FOURTH QUARTER VERY WEAK MINNEAPOLIS THIS DISTRICT'S ECONOMY WAS BEING LED BY CONSUMER SPENDING AND CONSTRUCTION RETAIL SALES FOR THE HOLIDAY SEASON WERE EXCELLENT CONSTRUCTION OF HOMES WAS STRONG ACROSS THE ENTIRE REGION ESPECIALLY IN THE MINNEAPOLIS ST PAUL METROPOLITAN AREA METAL MINING CONTINUED TO BE WEAK TWO MAJOR MINES SHUT DOWN TEMPORARILY DUE TO SLACK ORDERS KANSAS CITY RETAIL SALES IN THIS DISTRICT CONTINUED TO IMPROVE BANK LOAN DEMAND WAS STRENGTHENING AND FARM INCOME WAS RISING SLIGHTLY ACTIVITY IN THE ENERGY SECTOR PICKED UP TOWARD THE END OF THE YEAR BUT BUSINESS LEADERS WERE EXPECTING SOME SLOWING IN THE NEAR TERM DALLAS MOST INDUSTRIES IN THIS DISTRICT WERE OPTIMISTIC THE REPORT SAID ORDERS TO MANUFACTURING FIRMS HAVE INCREASED ESPECIALLY FOR CONSTRUCTIONRELATED PRODUCTS ALSO EXPIRING TAX CREDITS SPURRED AN ENDOFYEAR SURGE IN DOMESTIC DRILLING BOOSTING DEMAND FOR OILFIELD EQUIPMENT CONSTRUCTION AND REAL ESTATE ACTIVITY WERE INCREASING SLOWLY SAN FRANCISCO WEAKNESS IN CALIFORNIA WAS DRAGGING THE REST OF THIS DISTRICT DOWN HOWEVER THE MOOD OF BUSINESS LEADERS IMPROVED SINCE THE FED'S PREVIOUS REPORT OUTSIDE OF CALIFORNIA HOLIDAY SALES WERE GOOD THE MANUFACTURING SECTOR WAS SHOWING SIGNS OF IMPROVEMENT AND THERE WAS SOME GROWTH IN LOAN DEMANDPARTICULARLY IN ARIZONA UTAH AND WASHINGTON STATE NONRESIDENTIAL REAL ESTATE AND CONSTRUCTION WERE REPORTED TO BE WEAK ACROSS SEVERAL STATES IN THE REGION 9301220006 930122 AMERICAN BRANDS POSTS 77 PROFIT RISE IN 4TH QUARTER CITES NONTOBACCO UNITS OLD GREENWICH CONN AMERICAN BRANDS INC SAID FOURTHQUARTER NET INCOME ROSE 77 REFLECTING STRONG PERFORMANCE IN THE COMPANY'S NONTOBACCO BUSINESSES NET WAS 2333 MILLION OR 115 A SHARE COMPARED WITH 2166 MILLION OR 104 A SHARE IN THE YEAREARLIER PERIOD OVERALL REVENUE FELL SLIGHTLY TO 377 BILLION FROM 38 BILLION PARTLY DUE TO A SIGNIFICANT DROP IN INTERNATIONAL TOBACCO PRODUCT SALES FLUCTUATION IN FOREIGN EXCHANGE RATES MAINLY THE POUND DECREASED REVENUE BY 196 MILLION AND DECREASED EARNINGS BY 10 MILLION THE COMPANY SAID PRICE COMPETITION IN THE TOBACCO MARKETS IN BOTH THE US AND THE UK REMAINS INTENSE WILLIAM J ALLEY CHAIRMAN AND CHIEF EXECUTIVE SAID AMERICAN BRANDS WHICH HAS INTERESTS IN TOBACCO PRODUCTS DISTILLED SPIRITS AND FINANCIAL SERVICES SAID ITS FOUR NONTOBACCO CORE BUSINESSES AND ITS SPECIALTY BUSINESSES GROUP PERFORMED WELL IN 1992 EARNINGS FOR THE YEAR ROSE 96 TO 8838 MILLION OR 429 A SHARE COMPARED WITH 8061 MILLION OR 391 A SHARE IN 1991 AMERICAN BRANDS WILL TAKE A 200 MILLION CHARGE RELATED TO THE ADOPTION OF ACCOUNTING RULE 106 FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS IN ADDITION THE COMPANY WILL TAKE A 13 MILLION CHARGE FOR ADOPTING THE NEW ACCOUNTING RULE 112 FOR POSTEMPLOYMENT BENEFITS BOTH CHARGES WILL BE RECORDED IN THE 1993 FIRST QUARTER OWING TO THESE CHARGES THE PROSPECT OF A MUCH WEAKER POUND AND EXPECTATIONS OF LOWER PROFITS FROM ITS TOBACCO BUSINESS IN THE FIRST HALF OF 1993 THE COMPANY SAID IT EXPECTS TO POST LOWER CONSOLIDATED FIRST HALF PROFITS FOR OUR COMPANY COMPARED WITH 1992 IN THE FIRST HALF OF 1992 THE COMPANY EARNED 4478 MILLION OR 216 A SHARE A SPOKESMAN SAID 9301220005 930122 LEISURE & ARTS BOOKSHELF A PORTRAIT OF PALESTINIANS LIVING IN ISRAEL BY AMY DOCKSER MARCUS UNTIL 1948 THE ARAB VILLAGE OF BARTA'A WAS ONE THAT YEAR JORDANIAN AND ISRAELI OFFICIALS DRAFTING A CEASEFIRE AGREEMENT DECIDED THAT THE BORDER BETWEEN THE TWO COUNTRIES WOULD RUN THROUGH THE VALLEY THAT DIVIDES THE VILLAGE ONE MORNING THE VILLAGERS WOKE UP AND DISCOVERED THAT BARTA'A HAD BEEN SPLIT IN TWO THEN CAME ISRAEL'S VICTORY IN THE 1967 WAR AND THE CAPTURE OF THE WEST BANK BARTA'A WAS ONCE AGAIN REUNITED THE TWO HALVES TOTTERED TOWARD EACH OTHER MET IN THE WADI CLOVE TO EACH OTHER FOR SEVERAL HOURS AND THEN EACH INDIVIDUAL RETURNED TO HIS VILLAGE BEWILDERED WRITES DAVID GROSSMAN IN HIS MOVING NEW BOOK SLEEPING ON A WIRE CONVERSATIONS WITH PALESTINIANS IN ISRAEL FARRAR STRAUS & GIROUX 326 PAGES 22 AFTER 19 YEARS APART THE TWO SIDES HAD BECOME STRANGERS TO EACH OTHER THE OUTBREAK FIVE YEARS AGO OF THE PALESTINIAN UPRISING OR INTIFADA WENT A LONG WAY TOWARD ERASING THE PSYCHOLOGICAL BORDER THAT STILL DIVIDES BARTA'A FOR THE FIRST TIME THOSE LIVING ON THE ISRAELI SIDE BEGAN OPENLY DEFINING THEMSELVES AS PALESTINIANS SUPPORTING THE INTIFADA VERBALLY AND FINANCIALLY BUT THEY REFUSED TO ALLOW PALESTINIANS FROM THE OTHER SIDE TO RAISE PALESTINE LIBERATION ORGANIZATION FLAGS OVER THEIR HOUSES OR TO PAINT ANTIISRAELI SLOGANS ON THEIR WALLS TORN BETWEEN CONFLICTING IDENTITIES AS ISRAELI CITIZENS AND MEMBERS OF THE PALESTINIAN NATION ACCEPTING ISRAEL'S EXISTENCE BUT NOT DEMANDING FULL RIGHTS AS ISRAELI CITIZENS SUPPORTING THE PALESTINIAN STRUGGLE BUT NOT TAKING ACTIVE PART IN IT THE ISRAELI ARABS HAVE BECOME TO PARAPHRASE MR GROSSMAN ACROBATS ON A HIGH WIRE ONE FOOT CONSTANTLY SUSPENDED IN MIDAIR MR GROSSMAN SET OUT TO WRITE A BOOK ABOUT THE 800000 MEMBERS OF THE ISRAELI ARAB COMMUNITY WHO CONSTITUTE ONEFIFTH OF ISRAEL'S CITIZENS AS A FOLLOWUP TO HIS BESTSELLING BOOK THE YELLOW WIND AN ACCOUNT OF SEVEN WEEKS HE SPENT ON THE WEST BANK SHORTLY BEFORE THE OUTBREAK OF THE INTIFADA TRYING TO DETERMINE WHAT THE ISRAELI OCCUPATION HAD WROUGHT WHAT MR GROSSMAN DISCOVERS THIS TIME IS IN MANY WAYS FAR MORE DISTURBING WITH THE PALESTINIANS IN THE WEST BANK HE SHARES A COMMON INTEREST THE DESIRE TO DISCONNECT FROM EACH OTHER WITH THE ARAB CITIZENS OF HIS OWN COUNTRY THE RELATIONSHIP IS FAR MORE AMBIGUOUS AND COMPLEX WHILE MR GROSSMAN BELONGS TO THE SECTION OF ISRAELI SOCIETY THAT OPPOSES THE OCCUPATION HE UNCOVERS DURING HIS TRAVELS AMONG THE PALESTINIANS OF ISRAEL THE LIMITS OF EVEN HIS OWN GENUINE GOODWILL IN HIS SEEMING INABILITY TO EXPAND THE DEFINITION OF ISRAELI IDENTITY TO ACCOMMODATE THE DESIRES OF MOST PEOPLE HE MEETS THE BOOK CONTAINS CONVERSATIONS WITH INTELLECTUALS AND ACADEMICS MIXED JEWISHARAB COUPLES ISLAMIC FUNDAMENTALISTS AND BUSINESSMEN MR GROSSMAN MEETS WITH PEOPLE WHOSE PROPERTY AND LAND WERE TAKEN AFTER THE 1948 WAR ARAB CITIZENS WHO REMAIN IN ISRAEL BUT NOW LIVE IN VILLAGES THAT LACK OFFICIAL GOVERNMENT RECOGNITION OR ANY BASIC SERVICES DESPITE THE DISPARATE SETTINGS AND OUTLOOKS A COMMON THREAD RUNS THROUGH EACH CONVERSATIONTHE STRUGGLE TO BRING JEWS AND ARABS TOGETHER UNDER A COMMON ISRAELI IDENTITY AND THE ALMOST SUPERHUMAN EMOTIONAL EFFORT SUCH A TASK ENTAILS IN ONE POIGNANT SCENE MR GROSSMAN SITS IN ON A CONVERSATION BETWEEN MOHAMMED KIWAN A PALESTINIAN ATTORNEY AND JOJO ABUTBUL A MOROCCANBORN JEW WHO RUNS A BEACHFRONT RESTAURANT THE MEN SPEND THE AFTERNOON TOGETHER ARGUING AND TALKING BOTH SAY THEY WANT TO LIVE TOGETHER AS EQUAL CITIZENS OF ISRAEL BUT MR KIWAN ENVISIONS AN ISRAEL THAT DEFINES ITSELF AS THE COUNTRY OF ALL ITS CITIZENS MR ABUTBUL INSISTS ISRAEL MUST ABOVE ALL REMAIN THE COUNTRY OF THE JEWS FOR OUTSIDERS SUCH A DISPUTE MAY SEEM INCONSEQUENTIAL A TUSSLE OVER SOMETHING THAT IN THE END APPEARS TO BOIL DOWN TO SEMANTICS BUT FOR ISRAELI ARABS AND JEWS THIS IS THE VERY HEART OF THEIR DISPUTE THE ZIONIST MOVEMENT WANTED TO CREATE A JEWISH STATE ELECT A JEWISH PARLIAMENT BUILD A JEWISH ARMY FOR THE PALESTINIANS MR GROSSMAN MEETS SUCH A VISION OF ISRAELI IDENTITY IS SUFFOCATING AND REDUCES THEM AT BEST TO THE STATUS OF TOLERATED GUESTS RATHER THAN ACTIVE PARTICIPANTS IN ISRAEL'S DESTINY MR GROSSMAN CONTENDS THAT THE VAST MAJORITY OF ARABS HAVE NONETHELESS CHOSEN TO TRY TO INTEGRATE THEMSELVES INTO ISRAEL AND STRUGGLE FOR THEIR RIGHTS WITHIN THE FRAMEWORK OF ISRAELI LAW DESPITE THIS THE IDEA THAT AN ARAB CANNOT REALLY BE AN ISRAELI THAT GIVEN THE CHANCE HE WILL TRY TO HARM ISRAEL IS DEEPLY INGRAINED IN MANY JEWS EVEN MR GROSSMAN AFTER EXAMINING HIS OWN HEART ACKNOWLEDGES THE DIFFICULTY OF FINDING A CRACK IN THE ROUND CORNERLESS WALL HIS APT SYMBOL FOR THE DIVISION BETWEEN ISRAELI JEWS AND ARABS ENGAGED IN AN HONEST STRUGGLE TO RELATE TO EACH OTHER MR GROSSMAN'S ULTIMATE MESSAGE SEEMS TO BE THAT WHOEVER THINKS THAT THE ISRAELIPALESTINIAN DISPUTE WILL BE RESOLVED BY THE CURRENT PEACE TALKS IS MISTAKEN FOR ISRAEL'S ARABS AND JEWS THOSE TIGHTROPE WALKERS POISED IN MIDAIR NOW FOR 45 YEARS THE TRUE TEST WILL COME THE MORNING AFTER THE ESTABLISHMENT OF A PALESTINIAN STATE MS DOCKSER MARCUS IS A JOURNAL REPORTER IN TEL AVIV 9301220004 930122 BUSINESS BRIEF STOKELY USA INC MORGAN STANLEY WILL HELP FIRM EVALUATE ITS OPTIONS STOKELY USA INC SAID IT HIRED MORGAN STANLEY & CO TO HELP ITS BOARD EVALUATE ITS OPTIONS WHICH INCLUDE A JOINT VENTURE SELLING A MINORITY INTEREST IN THE COMPANY OR SELLING ALL OR PART OF THE COMPANY THE PROCESSOR AND MARKETER OF CANNED AND FROZEN FOOD SAID THERE ARE NO SPECIFIC TRANSACTIONS NOW BEING CONSIDERED EITHER THROUGH MORGAN STANLEY OR OTHERWISE STOKELY SAID IN LIGHT OF THE RECENT PROGRESS MADE ON IMPLEMENTATION OF MANAGEMENT'S LONGTERM STRATEGIC OBJECTIVES IT IS QUESTIONABLE WHETHER SHAREHOLDER VALUE WOULD BE BETTER SERVED BY ANY OF THE SHORTTERM ALTERNATIVES BEING EXPLORED IN ANY EVENT STOKELY SAID IT WILL CONTINUE ITS ONGOING BUSINESS WITHOUT DISRUPTION OF CUSTOMER SUPPLIER OR EMPLOYEE RELATIONSHIPS STOKELY BASED IN OCONOMOWOC WIS HAS ENDURED HEFTY LOSSES RECENTLY AND DISCONTINUED PAYMENT OF ITS QUARTERLY DIVIDEND STOKELY MOST RECENTLY REPORTED A LOSS OF 23 MILLION OR 28 CENTS A SHARE FOR ITS FISCAL SECOND QUARTER ENDED SEPT 30 IN NATIONAL OVERTHECOUNTER TRADING STOKELY CLOSED AT 950 OFF 125 CENTS 9301220003 930122 MARKETING & MEDIA TIME WARNER NAMES CHIEF EXECUTIVE TO THE ADDITIONAL POST OF CHAIRMAN BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC'S DIRECTORS PROMOTED THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE GERALD M LEVIN TO THE ADDITIONAL POST OF CHAIRMAN A MOVE THAT CONSOLIDATES HIS POWER AS THE COMPANY'S LEADER IN THE WAKE OF THE DEATH LAST MONTH OF STEVEN J ROSS WHO SERVED AS CHAIRMAN AND COCHIEF EXECUTIVE PEOPLE CLOSE TO THE COMPANY SAID THE ENTERTAINMENT CONCERN ALSO HAS IDENTIFIED AT LEAST THREE POTENTIAL NEW DIRECTORS STEPPING UP AN EFFORT TO RESTRUCTURE ITS BOARD AFTER A SHAKEUP THAT COINCIDED WITH MR ROSS'S DEATH EIGHT DIRECTORS INCLUDING MOST OF THE INSIDERS LEFT THE 21MEMBER BOARD AND THE COMPANY AIMS TO BRING IN SOME HIGHPROFILE OUTSIDERS WHILE THE NAMES OF THE POTENTIAL NOMINEES COULDN'T BE LEARNED ONE OF THE PROSPECTS IS SAID TO BE A FORMER TIME WARNER DIRECTOR SEPARATELY THE COMPANY AS EXPECTED SAID IT WILL REDEEM 25 BILLION OF AN EXPENSIVE PREFERRED STOCK ISSUED IN CONNECTION WITH TIME INC'S MERGER WITH WARNER COMMUNICATIONS INC IN 1989 MR LEVIN A VETERAN OF THE FORMER TIME INC JOINED MR ROSS AS COCHIEF EXECUTIVE EARLY LAST YEAR AFTER A BOARDROOM COUP IN WHICH HIS LONGTIME TIME RIVAL NJ NICHOLAS JR WAS UNSEATED WITH THAT MOVE MR LEVIN EMERGED AS MR ROSS'S PRESUMED SUCCESSOR AND TOOK ON AN EVER INCREASING WORKLOAD WHILE MR ROSS WAS ON LEAVE BATTLING PROSTATE CANCER WITH YESTERDAY'S APPOINTMENT MR LEVIN NOW HOLDS TIME WARNER'S THREE EXECUTIVE TITLES WHICH OBSERVERS SAY SHOULD DEFUSE CONCERN ABOUT HIS GRIP ON THE COMPANY SPECULATION HAS PERSISTED THAT MR LEVIN MIGHT FACE CHALLENGES FROM LONGTIME ROSS LOYALISTS OR THAT DIRECTORS MIGHT TURN TO AN OUTSIDER TO RUN THE COMPANY SINCE MR ROSS'S DEATH HOWEVER DIRECTORS HAVE REPEATEDLY REAFFIRMED THEIR SUPPORT FOR MR LEVIN AMONG FORMER DIRECTORS CONSIDERED POSSIBLE CANDIDATES FOR THE TIME WARNER BOARD IS DAVID KEARNS FORMER CHAIRMAN OF XEROX CORP MR KEARNS RESIGNED AS A TIME WARNER DIRECTOR WHEN HE WAS APPOINTED TO A TOP EDUCATION POST IN THE BUSH ADMINISTRATION TWO YEARS AGO WITH THE CHANGE OF ADMINISTRATIONS MR KEARNS IS EXPECTED TO BE OUT OF THAT JOB ANOTHER POSSIBILITY IS JOHN R OPEL FORMER CHAIRMAN OF INTERNATIONAL BUSINESS MACHINES CORP WHO LIKE MR KEARNS WAS A LONGTIME TIME INC DIRECTOR MEANWHILE THE COMPANY SAID IT WILL REDEEM 45 MILLION OF THE 65 MILLION SHARES OF ITS SERIES D 11 CONVERTIBLE EXCHANGEABLE PREFERRED STOCK THE REDEEMED SHARES WILL HAVE A FACE VALUE OF 25 BILLION THE MOVE WILL RESULT IN ANNUAL AFTERTAX SAVINGS OF 28 MILLION TO 30 MILLION IN INTEREST COST ANALYSTS SAID BY REDEEMING THE PREFERRED STOCK WHICH WAS CONVERTIBLE TO COMMON STOCK TIME WARNER WILL AVOID DILUTION OF EARNINGS PER SHARE ANALYSTS NOTED IT'S A GOOD MOVE SAID ANALYST RICHARD SIMON OF GOLDMAN SACHS & CO 9301220002 930122 RALSTON IS PROPOSING SEPARATE CLASS OF STOCK FOR ITS BAKING UNIT ST LOUIS RALSTON PURINA CO PROPOSED CREATING A SEPARATE STOCK FOR CONTINENTAL BAKING CO JUST MONTHS AFTER SCRAPPING A SPINOFF OF THAT UNIT UNDER THE NEW PLAN RALSTON SHAREHOLDERS WOULD RECEIVE ONEFIFTH OF A SHARE IN THE MAKER OF WONDER BREAD HOSTESS CAKES AND TWINKIES FOR EACH SHARE OF RALSTON IF THEY APPROVE THE PUBLIC WOULD OWN 55 OF THE NEW CONTINENTAL BAKING GROUP AND RALSTON WOULD OWN 45 THE REMAINING RALSTON BUSINESSES PRIMARILY PET FOODS CEREALS EVEREADY BATTERIES AND BEECHNUT BABY FOOD WOULD BE ORGANIZED INTO THE RALSTON PURINA GROUP CURRENT SHARES OF RALSTON COMMON STOCK WOULD BE CHANGED INTO SHARES OF RALSTON PURINA GROUP CONTINENTAL BAKING IS THE NATION'S LARGEST BAKER WITH ANNUAL SALES OF MORE THAN 2 BILLION THE SURPRISE MOVE ANNOUNCED AT RALSTON'S ANNUAL MEETING FOLLOWS A DECISION IN SEPTEMBER TO ABANDON A PROPOSED TOTAL SPINOFF OF THE UNIT WHICH HAS BEEN HIT BY INTENSE COMPETITION UNDER THAT PLAN CONTINENTAL WOULD HAVE PAID RALSTON A SPECIAL DIVIDEND OF AS MUCH AS 600 MILLION ANALYSTS HAVE SINCE SPECULATED THAT THAT PAYMENT WOULD HAVE LEFT A TOTALLY INDEPENDENT CONTINENTAL BAKING WITH TOO MUCH DEBT THE NEW PLAN CALLS FOR RALSTON TO TRANSFER SOME DEBT TO CONTINENTAL BUT FOR RALSTON TO RETAIN RESPONSIBILITY FOR IT BUT IN CONTRAST TO THE ORIGINAL PLAN RALSTON APPARENTLY WOULDN'T REALIZE AN IMMEDIATE LARGE CASH PAYMENT FROM CONTINENTAL IN DISCLOSING THE PLAN RALSTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILLIAM P STIRITZ SAID THE REVISED STRATEGY WOULD GIVE THE COMPANY MORE FLEXIBILITY IN RAISING FUTURE CAPITAL INCLUDING FUNDS FOR POSSIBLE ACQUISITIONS RALSTON SHARES CLOSED UNCHANGED AT 4525 ON THE NEW YORK STOCK EXCHANGE YESTERDAY 9301220001 930122 BUSINESS BRIEF CUBIC CORP FIRM TO SELL US ELEVATOR TO THYSSEN AUFZUGE GMBH CUBIC CORP SAID IT AGREED IN PRINCIPLE TO SELL ITS US ELEVATOR CORP SUBSIDIARY ACCOUNTING FOR NEARLY 30 OF FISCAL 1992 SALES TO THYSSEN AUFZUGE GMBH TERMS OF THE TRANSACTION WEREN'T DISCLOSED BILL BOYLE CUBIC'S CHIEF FINANCIAL OFFICER SAID IN SAN DIEGO THAT HE EXPECTED THE SALE TO CLOSE IN SEVERAL WEEKS CUBIC SAID LAST OCTOBER THAT IT WAS IN TALKS TO SELL A 50 STAKE IN THE ELEVATOR OPERATIONS TO THYSSEN AUFZUGE AN INDUSTRIAL CONCERN WITH ELEVATOR OPERATIONS IN NEUHAUSEN GERMANY YESTERDAY MR BOYLE SAID THAT DURING THE NEGOTIATIONS IT BECAME APPARENT TO BOTH SIDES THAT A 5050 DEAL WOULD POSE CONTROL AND OPERATING PROBLEMS IN THE YEAR ENDED SEPT 30 US ELEVATOR HAD SALES OF 100 MILLION CUBIC WHICH ALSO HAS OPERATIONS IN AUTOMATIC REVENUE COLLECTION AND DEFENSERELATED BUSINESSES HAD TOTAL SALES OF ABOUT 350 MILLION 9301210173 930121 WHO'S NEWS CREDIT LYONNAIS SA CREDIT LYONNAIS SA PARIS FREDERICK HADDAD AND LESLIE WERTHEIM WERE NAMED SENIOR VICE PRESIDENTS IN THE MERCHANT BANKING DIVISION AT CREDIT LYONNAIS USA THE US ARM OF THIS COMMERCIAL BANK MR HADDAD 43 WILL HEAD ACQUISITION FINANCE WHILE MR WERTHEIM 43 WILL HEAD STRUCTURED FINANCE BOTH HAD BEEN FIRST VICE PRESIDENTS 9301210172 930121 WHO'S NEWS WESTERN DIGITAL CORP WESTERN DIGITAL CORP IRVINE CALIF CHARLES A HAGGERTY 51 YEARS OLD WAS ELECTED A DIRECTOR INCREASING THE BOARD TO NINE MEMBERS MR HAGGERTY WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF COMPUTER DISK DRIVE PRODUCTS IN JUNE 1992 9301210171 930121 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK ROBERT J ACKLEY 32 YEARS OLD WAS NAMED VICE PRESIDENT OF FINANCE AND OPERATIONS OF THE RECENTLY ESTABLISHED CAPITAL CITIES/ABC VIDEO PUBLISHING UNIT OF THIS MAJOR BROADCASTER THE NEW UNIT MARKETS DISTRIBUTES AND ACQUIRES HOME VIDEO PROGRAMMING MR ACKLEY HAD BEEN DIRECTOR OF CORPORATE FINANCIAL REPORTING AND ANALYSIS FOR THE PARENT COMPANY CYNTHIA J BASCIANI 36 WAS NAMED VICE PRESIDENT OF PROGRAMMING AND ACQUISITION AT THE NEW UNIT MS BASCIANI HAD BEEN SENIOR VICE PRESIDENT OF THE SPECIAL INTEREST DIVISION AT COLUMBIA TRISTAR HOME VIDEO A UNIT OF SONY CORP BOTH WILL BE BASED IN STAMFORD CONN 9301210170 930121 MOODY'S DOWNGRADES DECLINED DURING 1992 UPGRADES INCREASED NEW YORK FOR THE SECOND YEAR IN A ROW THE NUMBER OF CORPORATE RATING DOWNGRADES DECLINED IN 1992 WHILE UPGRADES ROSE MOODY'S INVESTORS SERVICE INC SAID BUT THE RATING SERVICE SAID CORPORATE CREDIT HEALTH IS EXPECTED TO REMAIN LESS THAN ROBUST THIS YEAR AS ISSUERS LABOR UNDER STILLHEFTY DEBT LOADS EXCESS CAPACITY AND INTENSE COMPETITION AMID SLOW GLOBAL ECONOMIC GROWTH A STRENGTHENING OF THE DOLLAR ALSO WILL WEAKEN THE COMPETITIVE POSITION OF EXPORTS FOR MANY US CONCERNS NEVERTHELESS MOODY'S PREDICTS THE GAP BETWEEN CORPORATE DOWNGRADES AND UPGRADES WILL CONTINUE TO NARROW IN 1992 MOODY'S LOWERED RATINGS ON DEBT OR OTHER FINANCIAL OBLIGATIONS OF 227 US COMPANIES WHILE IT RAISED RATINGS OF 136 COMPANIES THE RATIO OF 17 DOWNGRADES FOR EVERY UPGRADE WAS THE LOWEST SINCE 1988 IN 1991 THE RATIO OF DOWNGRADES TO UPGRADES WAS 29 MOODY'S SAID ALTHOUGH THE DOLLAR VOLUME OF DOWNGRADED DEBT WAS 377 BILLION AND THE VOLUME OF UPGRADED DEBT WAS 125 BILLION IN 1992 THE RATING AGENCY SAID THAT MORE THAN HALF OF THE YEAR'S FLOOD OF DOWNGRADED DEBT BELONGED TO FOUR ISSUERS GENERAL MOTORS CORP SEARS ROEBUCK & CO CHRYSLER CORP WHICH WAS UPGRADED THIS MONTH AND INTERNATIONAL BUSINESS MACHINES CORP MOODY'S SAID THE STEEPEST DECLINES DURING THE YEAR OCCURRED IN THE INDUSTRIALS SECTOR WITH COMPANIES IN THE AIRLINE AUTOMOTIVE ENERGY RETAIL AND HOUSEHOLD PRODUCTS SECTORS HARDEST HIT BUT THE RATING AGENCY SAID EVEN THIS LOSS OF CREDIT STRENGTH REPRESENTED BETTER TIMES FOR INDUSTRIALS THE BEST CREDITQUALITY IMPROVEMENTS IN 1992 CAME IN THE BANKING SECTOR WHERE UPGRADES OUTPACED DOWNGRADES FOR THE FIRST TIME IN SEVEN YEARS RATINGS OF EIGHT BANKS WERE LOWERED IN 1992 DOWN FROM 47 BANK DOWNGRADES IN 1991 AND THE 25 UPGRADES LAST YEAR EXCEEDED THE 15 IN 1991 9301210169 930121 WHO'S NEWS ADVANCED TISSUE SCIENCES INC ADVANCED TISSUE SCIENCES INC LA JOLLA CALIF GAIL R WILENSKY WAS ELECTED A DIRECTOR OF THIS TISSUE ENGINEERING CONCERN INCREASING BOARD MEMBERSHIP TO SEVEN DR WILENSKY MOST RECENTLY SERVED AS DEPUTY ASSISTANT TO THE PRESIDENT FOR POLICY DEVELOPMENT IN THE BUSH ADMINISTRATION 9301210168 930121 WHO'S NEWS DEP CORP DEP CORP RANCHO DOMINGUEZ CALIF DENNIS F HOLT 56YEAROLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF WESTERN INTERNATIONAL MEDIA CORP WAS ELECTED A DIRECTOR OF THIS PERSONALCARE PRODUCTS CONCERN HE SUCCEEDS NATHAN J LEANSE 59 WHO RECENTLY BECAME VICE PRESIDENT OF ADMINISTRATION FOR THE COMPANY 9301210167 930121 WHO'S NEWS METCOIL SYSTEMS CORP METCOIL SYSTEMS CORP CEDAR RAPIDS IOWA K JOHN DEL VECCHIO FORMERLY PRESIDENT OF EPM SYSTEMS INC WAS NAMED PRESIDENT OF THIS SHEETMETAL SUPPLIER'S LOCKFORMER CO SUBSIDIARY HE SUCCEEDS LEO GALE WHO RETIRED EFFECTIVE JAN 1 MR DEL VECCHIO HAS BEEN A DIRECTOR OF THE COMPANY SINCE 1986 9301210166 930121 INTERNATIONAL JAPAN ADOPTS EMBARRASSED MIEN IN ANTICIPATION OF '92 TRADE TALLY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN WILL ISSUE A STARK REMINDER TOMORROW THAT FOR ALL ITS ECONOMIC PROBLEMS THIS NATION'S INDUSTRIES ARE STILL WORLD POWERS IN 1992 JAPANESE TRADE HAD A RECORDSHATTERING SURPLUS AND ECONOMISTS EXPECT THAT TRADE SURPLUS PROBABLY TOPPING 100 BILLION UP A THIRD FROM 1991 TO KEEP GETTING BIGGER IN YEARS TO COME JAPANESE BUSINESS AND GOVERNMENT OFFICIALS AREN'T CROWING ABOUT THEIR TRADING PROWESS IF ANYTHING THEY ARE AVOIDING THE SPOTLIGHT WE AREN'T ASHAMED OF IT SAYS NOBORU HATAKEYAMA A VICE MINISTER AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY BUT CERTAINLY WE ARE NOT PROUD OF IT HE ADDS WE ARE AIMING AT MORE BALANCED TRADE JAPANESE INSIST THE SURPLUS ISN'T AN ECONOMIC PROBLEM FOR THE WORLD IT'S A POLITICAL PROBLEM SAYS KAZUO OGURA DIRECTORGENERAL OF THE FOREIGN MINISTRY'S ECONOMIC AFFAIRS BUREAU WE HAVE TO MITIGATE THESE CONCERNS MR OGURA HAS JUST RETURNED FROM EUROPE WHERE GOVERNMENT OFFICIALS PEPPERED HIM WITH COMPLAINTS ABOUT JAPANESE TRADE PRACTICES AT THE SAME TIME THE JAPANESE ARE NERVOUSLY MONITORING WASHINGTON AS ONE CLINTON NOMINEE AFTER ANOTHER PROCLAIMS DURING CONFIRMATION HEARINGS THAT THE NEW ADMINISTRATION WILL PRESS OTHER COUNTRIES FOR MORE OPEN MARKETS PRESIDENT CLINTON'S CHOICE FOR US TRADE REPRESENTATIVE MICKEY KANTOR TOLD SENATORS EARLIER THIS WEEK THAT THE CONTINUING LARGE JAPANESE TRADE SURPLUS WILL BE HIGH ON OUR AGENDA JAPAN'S 1992 TRADE SURPLUS WITH THE US ALONE LIKELY SURPASSED 40 BILLION THE FIRST TIME THAT HAS HAPPENED SINCE 1989 JAPANESE OFFICIALS HOPE PLANS FOR INCREASED GOVERNMENT SPENDING COUPLED WITH TAX CREDITS FOR IMPORTS OF MANUFACTURED GOODS WILL HELP DEFLECT FOREIGN CRITICISM OF THE NATION'S TRADE SURPLUS THOSE MEASURES THEY SAY WILL PULL MORE IMPORTS INTO THE DOMESTIC ECONOMY THE GOVERNMENT IS ALSO TRYING TO CHANGE THE WAY JAPAN RECYCLES TO THE REST OF THE WORLD THE MONEY IT RAKES IN FROM ITS TREMENDOUS TRADE IMBALANCE DURING JAPAN'S ECONOMIC HEYDAY IN THE LATE 1980S JAPANESE COMPANIES RECHANNELED THE PROCEEDS BY BUILDING FACTORIES AND BUYING COMPANIES IN FOREIGN COUNTRIES AND BY UNDERWRITING FOREIGN GOVERNMENT DEBT BY BUYING TREASURY BONDS THOSE MOVES HELPED MAKE JAPAN'S SURPLUS MORE PALATABLE BY CREATING JOBS IN OTHER NATIONS NOW WITH JAPAN REELING FROM RECESSION THAT DIRECT INVESTMENT OVERSEAS HAS DRIED UP ECONOMISTS SAY JAPAN IS STILL RECYCLING ITS SURPLUS BUT IN A LESS OBVIOUS FORM JAPANESE BANKS AND COMPANIES PAYING OFF OUTSTANDING FOREIGN DEBT MITI IS TRYING TO GIVE JAPANESE COMPANIES MORE INCENTIVES TO LEND MONEY TO FOREIGN COMPANIES MORE POSITIVELY SAYS MITI'S MR HATAKEYAMA LAST YEAR WAS THE SECOND STRAIGHT YEAR JAPAN'S TRADE SURPLUS ROSE FOLLOWING FOUR CONSECUTIVE ANNUAL DECLINES THE NEW TREND RAISES QUESTIONS ABOUT HOW SUCCESSFULLY JAPAN HAS MET ITS MID1980S VOW TO THE OTHER INDUSTRIALIZED NATIONS TO RESHAPE ITS ECONOMY TO ONE POWERED BY DOMESTIC DEMAND RATHER THAN EXPORTS JAPAN'S PHENOMENAL GROWTH IN THE LATE 1980S WAS INDEED TRIGGERED LARGELY BY CONSUMER SPENDING AT HOME AND THE COUNTRY'S TRADE SURPLUS FELL AS A RESULT BUT NOW JAPANESE OFFICIALS SAY THAT GROWTH WAS PARTLY AN ARTIFICIAL BUBBLE AND THE ACCOMPANYING RISE IN IMPORTS WAS EXAGGERATED BY EXTENSIVE LUXURY PURCHASES ART JEWELRY EXPENSIVE CARS THAT SORT OF SPENDING ISN'T LIKELY TO RISE EVEN WHEN JAPAN'S ECONOMY RECOVERS WHICH IS ONE REASON MANY ECONOMIC FORECASTS SHOW JAPAN'S SURPLUS INCREASING EVEN WITH STRONGER ECONOMIC GROWTH STILL THE STRUCTURE OF JAPAN'S CURRENT TRADE SURPLUS DIFFERS FROM THE SURPLUS THAT SO AGITATED WESTERN NATIONS SEVEN YEARS AGO FOR STARTERS IT'S MORE GEOGRAPHICALLY BALANCED IN 1986 THE SURPLUS WITH THE US ALONE EQUALED 62 OF THE TOTAL IN 1992 THE US SHARE FELL TO ONLY ABOUT 40 BY CONTRAST EUROPE'S SHARE OF JAPAN'S SURPLUS HAS RISEN TO ABOUT 30 UP FROM ABOUT 20 IN 1986 THE MAJOR ASIAN CAPITALIST ECONOMIES' SHARE OF THE SURPLUS HAS SOARED TO ABOUT 40 UP FROM 12 IN 1986 THE SHARES OF THE THREE REGIONS EXCEED 100 BECAUSE JAPAN RUNS A DEFICIT WITH THE OILEXPORTING MIDDLE EAST THIS TIME JAPAN'S TRADE SURPLUS HAS NOTHING TO DO WITH AN EXPORT DRIVE INSISTS THE FOREIGN MINISTRY'S MR OGURA WHO NOTES THAT MUCH OF THE RUNUP SIMPLY STEMS FROM THE RECENT RISE IN THE VALUE OF THE YEN AGAINST THE DOLLAR A STRONGER YEN MEANS THAT THE SAME EXPORTED PRODUCTS ARE SUDDENLY WORTH MORE WHEN PRICED IN DOLLARS THUS JAPAN'S SURPLUS WITH THE US FOR EXAMPLE ROSE 16 DURING THE FIRST 11 MONTHS OF 1992 IN DOLLAR TERMS BUT ROSE ONLY 85 IF MEASURED IN YEN ANOTHER REASON THE SURPLUS HAS SOARED IS THAT JAPANESE EXPORTS HAVE SHIFTED TO MORE HIGHVALUEADDED PRODUCTS SUCH AS LUXURY CARS IN EXPORTS TO THE US A SHIFT FROM CONSUMER PRODUCTS TO MACHINE TOOLS AND OTHER BIGTICKET CAPITAL GOODS ALSO HAS ACCOUNTED FOR SOME OF THE WIDENING SURPLUS BUT JOSEPH T GORMAN CHIEF EXECUTIVE OF TRW IN AND COCHAIRMAN OF THE USJAPAN BUSINESS COUNCIL SAYS ONE ASPECT OF THE SURPLUS REMAINS THE SAME THE JAPANESE LEAD THE PACK IN COMPETITIVENESS IN MANY DIMENSIONS IN PRODUCT DESIGN PRODUCT QUALITY PRODUCTION PROCESSES IN JAPAN'S EFFORTS TO REDUCE THE SURPLUS MR HATAKEYAMA AND OTHER JAPANESE OFFICIALS INSIST THAT A MACROECONOMIC EFFORT IS THE MAIN ROAD FOR US ECONOMIC THEORY SAYS THAT COUNTRIES WITH HIGH SAVINGS RATES JAPAN'S WAS 346 OF GROSS DOMESTIC PRODUCT IN 1990 COMPARED WITH 144 FOR THE US TEND TO RUN HIGH TRADE SURPLUSES SO MANY JAPANESE SAY THAT'S THE ONLY REAL WAY TO ATTACK THE ISSUE BUT MR GORMAN SAYS IT'S NONSENSE TO IGNORE WHAT HE CALLS JAPAN'S FUNDAMENTALLY DIFFERENT SYSTEM OF COMPETITION AND TRADE HE AND OTHERS SAY INFORMAL BARRIERS IN MANY SECTORS BLOCK IMPORTS AND THAT THE US GOVERNMENT MUST TAKE A TOUGHER LINE IN FORCING CHANGES IN THAT SYSTEM MR KANTOR INDICATED IN HIS TESTIMONY THAT THE CLINTON ADMINISTRATION WOULD LIKELY TARGET AREAS WHERE IT CONSIDERED THE JAPANESE MARKET CLOSED EVEN SOME JAPANESE ARE BEGINNING TO AGREE JAPAN HAS BEEN LATE IN OPENING ITS MARKETS TO THE WORLD AND ASSURING THE TRANSPARENCY OF THOSE MARKETS SONY CORP CHAIRMAN AKIO MORITA WROTE IN A RECENT JAPANESE MAGAZINE ARTICLE IF JAPAN PERSISTS IN CLINGING TO ITS TRADITIONAL SYSTEMS IT RUNS THE RISK OF BECOMING ISOLATED IN THE WORLD 9301210165 930121 WHO'S NEWS WALLACE COMPUTER SERVICES INC WALLACE COMPUTER SERVICES INC HILLSIDE ILL R DARRELL EWERS 59YEAROLD EXECUTIVE VICE PRESIDENT OF WM WRIGLEY JR CO WAS NAMED A DIRECTOR OF THIS COMPUTER SERVICES AND SUPPLY CONCERN SUCCEEDING WILLIAM J HAGENAH JR WHO RETIRED IN NOVEMBER 1992 9301210164 930121 WHO'S NEWS WACHOVIA CORP WACHOVIA CORP WINSTONSALEM NC ANTHONY L FURR 48 YEARS OLD WAS NAMED CHIEF EXECUTIVE OF SOUTH CAROLINA NATIONAL CORP A SUBSIDIARY OF THIS BANKHOLDING COMPANY HE WAS ALSO NAMED CHIEF EXECUTIVE OF THE SUBSIDIARY'S BANK SOUTH CAROLINA NATIONAL MR FURR WHO IS ALREADY PRESIDENT OF BOTH ORGANIZATIONS REPLACES JAMES G LINDLEY WHO HAS BEEN CHAIRMAN AND CHIEF EXECUTIVE SINCE 1980 MR LINDLEY WILL REMAIN CHAIRMAN OF BOTH ORGANIZATIONS UNTIL HIS RETIREMENT JUNE 30 9301210163 930121 DECISION NEARS ON AMERICAN EXPRESS SEARCH CLASH LOOMS AS ROBINSON SEEKS SUPPORT ON GOLUB OTHERS BACK AN OUTSIDER BY JOANN S LUBLIN AND FRED R BLEAKLEY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE CHOICE OF A SUCCESSOR TO JAMES ROBINSON III AS AMERICAN EXPRESS CO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER APPEARS HEADED FOR A SHOWDOWN THE COMPANY'S FIVEPERSON SEARCH COMMITTEE IS MEETING HERE TODAY TO DECIDE WHOM TO RECOMMEND TO THE 19MEMBER BOARD WHICH MEETS MONDAY TWO COMMITTEES MADE UP OF 14 DIRECTORS SOME OF WHOM ARE ALSO ON THE SEARCH COMMITTEE WILL BE MEETING TODAY AS WELL TWO LEADING OUTSIDE CANDIDATES ARE SAID TO BE CHIEF EXECUTIVES OF MAJOR CONSUMERPRODUCTS CONCERNS BUT MR ROBINSON IS BACKING HARVEY GOLUB AMERICAN EXPRESS'S 53YEAROLD PRESIDENT MR ROBINSON HAS DECLINED TO COMMENT BUT ACCORDING TO ONE PERSON CLOSE TO THE SITUATION MR ROBINSON BELIEVES HE HAS ENOUGH SUPPORT ON THE BOARD TO MAKE MR GOLUB CHIEF EXECUTIVE UNDER AN ARRANGEMENT THAT WOULD LET MR ROBINSON REMAIN CHAIRMAN FOR AN INDEFINITE PERIOD JIMMY THINKS HE HAS BETWEEN 12 AND 14 VOTES AND ALL HE NEEDS IS 10 VOTES THE INDIVIDUAL SAID THROUGHOUT THE SEARCH PROCESS HE HAS BEEN WORKING LIKE HELL TO LINE UP BOARD VOTES FOR MR GOLUB MR ROBINSON'S GOAL HAS BEEN TO MAKE SURE THAT IT ISN'T AN OUTSIDER WHO SUCCEEDS HIM AS CHIEF EXECUTIVE THE INDIVIDUAL ADDED BUT OTHER PEOPLE CLOSE TO THE BOARD SAY MR ROBINSON MAY NOT HAVE ENOUGH SUPPORT TO PUSH THROUGH HIS OWN CHOICE OF SUCESSOR FOR ONE THING EVEN IF HE DOES GET 12 TO 14 VOTES THE BOARD MAY WANT THE DECISION TO BE NEARLY UNANIMOUS ALTHOUGH MOST DIRECTORS REMAIN LOYAL TO MR ROBINSON AT LEAST FIVE ARE BELIEVED TO BE OPPOSED TO MR GOLUB MR ROBINSON MAY SIMPLY FIND HIMSELF BARGAINING FOR EITHER A FUTURE ROLE FOR HIMSELF AT THE COMPANY OR A PROMISE THAT MR GOLUB WILL HAVE A SHOT AT THE CEO SPOT WITHIN FIVE YEARS THERE IS LIKELY TO BE AT LEAST INFORMAL DISCUSSION OF THE CEO ISSUE AS BOARD MEMBERS GATHER IN NEW YORK TODAY TO DISCUSS 1992 FINANCIAL RESULTS MR ROBINSON APPARENTLY LACKED ENOUGH VOTES TO ANOINT MR GOLUB WHEN THE SUCCESSION DRAMA BEGAN LAST FALL AT A SUPPER MEETING THE NIGHT BEFORE THE BOARD MET IN SEPTEMBER MR ROBINSON 57 TOLD BOARD MEMBERS HE DIDN'T PLAN TO STAY IN HIS POST PAST THE AGE OF 60 DIRECTORS THEN SURPRISED MR ROBINSON BY DEMANDING HIS DEPARTURE IN THE NEAR FUTURE DIRECTORS ARE EAGER TO AVOID A REPETITION OF THE DIVISIVE SEPTEMBER MEETING WHEN SIDES WERE DRAWN OVER WHETHER TO SEEK AN IMMEDIATE SUCCESSOR TO MR ROBINSON THE BOARD DECIDED TO BEGIN ITS SEARCH INCLUDING INTERVIEWING OUTSIDE CANDIDATES BECAUSE IT WANTED TO QUELL A POSSIBLE COUP LED BY ONE OUTSIDE DIRECTOR RAWLEIGH WARNER JR THE RETIRED CHAIRMAN OF MOBIL CORP IS SAID TO HAVE PROPOSED MR ROBINSON'S IMMEDIATE OUSTER AND ACCORDING TO AN ARTICLE IN THE NEW YORKER MAGAZINE THIS WEEK HIS REPLACEMENT BY AN INTERIM EXECUTIVE COMMITTEE OF DIRECTORS THE PERSON CLOSE TO THE SITUATION SAID THOSE REPORTS ARE ACCURATE MR WARNER COULDN'T BE REACHED TO COMMENT THOUGH THE IDENTITIES OF THE TWO LEADING OUTSIDE CANDIDATES ARE UNKNOWN A NUMBER OF NAMES HAVE POPPED UP ON WALL STREET AND AMONG EXECUTIVE RECRUITERS AS FITTING THE SEARCH COMMITTEE'S CRITERIA A SEASONED CONSUMERPRODUCTS EXECUTIVE WHO HAS LED HIS COMPANY THROUGH SIGNIFICANT CHALLENGES AMONG THEM ARE REUBEN MARK CHAIRMAN AND CEO OF COLGATEPALMOLIVE CO JOHN SCULLEY CHAIRMAN AND CEO OF APPLE COMPUTER INC ROBERT L CRANDALL CHAIRMAN PRESIDENT AND CEO OF AMR CORP WILLIAM D SMITHBURG CHAIRMAN AND CEO OF QUAKER OATS CO JOHN H BRYAN CHAIRMAN AND CEO OF SARA LEE CORP AND ROGER A ENRICO CHAIRMAN OF PEPSICO INC'S WORLDWIDE FOODS BUSINESS TUESDAY MR ENRICO ISSUED AN INTERNAL STAFF MEMO DENYING THAT HE WAS A CANDIDATE A SARA LEE INSIDER SAID THERE WAS NO WAY THAT MR BRYAN WOULD ACCEPT THE HELM OF AMERICAN EXPRESS THROUGH A SPOKESMAN MR SCULLEY SAID HE IS HAPPY AT APPLE AND HAS NO PLANS TO LEAVE MR CRANDALL THROUGH A SPOKESMAN SAID THERE IS ABSOLUTELY NO SUBSTANCE TO THAT SPECULATION A QUAKER OATS SPOKESMAN SAID WE'RE JUST SIMPLY NOT GOING TO COMMENT ON SPECULATION ABOUT MR SMITHBURG AND AMERICAN EXPRESS AND MR MARK AT COLGATE DECLINED TO COMMENT CITING COMPANY POLICY ABOUT DISCUSSING MATTERS AT OTHER COMPANIES CONTENDERS FOR CEO JOBS ALMOST NEVER CONCEDE THAT THEY'RE UNDER CONSIDERATION BECAUSE THEY COULD JEOPARDIZE THEIR CURRENT POSITION EXECUTIVE RECRUITERS SAY AMERICAN EXPRESS HIRED EXECUTIVE RECRUITERS HEIDRICK & STRUGGLES INC TO ASSIST IN ITS SEARCH GERARD ROCHE THE FIRM'S CHAIRMAN SAID MR ROBINSON AND RICHARD M FURLAUD AN OUTSIDE DIRECTOR AND FORMER PRESIDENT OF BRISTOLMYERS SQUIBB CO ARE IN CONTROL OF THE PROCESS AS COCHAIRMEN OF THE SEARCH COMMITTEE THE SEARCH FOR MR ROBINSON'S SUCCESSOR SHOULD BE REACHING A CONCLUSION WITHIN A REASONABLE TIME MR ROCHE SAID BUT HE DECLINED TO COMMENT FURTHER BUT WHILE AMERICAN EXPRESS PERSONNEL AND ITS MAJOR INVESTORS ARE EAGER FOR THE ISSUE TO BE RESOLVED AN ANNOUNCEMENT WON'T NECESSARILY FOLLOW MONDAY'S MEETING WE MAY SIMPLY EVALUATE AND THEN GIVE MORE DIRECTION TO THE SEARCH COMMITTEE SAID ONE DIRECTOR WHO ASKED NOT TO BE NAMED SILENCE ON THE ISSUE BEYOND MONDAY HOWEVER WOULD INDICATE TO MANY THAT MR GOLUB IS OUT OF THE RUNNING HOW MUCH TIME DO THEY NEED TO SIZE HIM UP ASKED A FORMER EXECUTIVE OF THE COMPANY THE FORMER EXECUTIVE SAID A NUMBER OF DIRECTORS WERE FAVORABLY IMPRESSED WITH MR GOLUB AT THE NOVEMBER BOARD MEETING THERE HE AND KENNETH CHENAULT HEAD OF THE US CARD OPERATIONS OF TRAVEL RELATED SERVICES DESCRIBED PROGRESS THAT HAD BEEN MADE IN PERSUADING AMERICAN EXPRESS CUSTOMERS TO USE THEIR CREDIT CARDS MORE FREQUENTLY 9301210162 930121 WHO'S NEWS CLOROX CO CLOROX CO OAKLAND CALIF JOHN W COLLINS FORMER PRESIDENT CHIEF OPERATING OFFICER AND DIRECTOR OF THIS HOUSEHOLD PRODUCTS COMPANY WAS REELECTED A DIRECTOR MR COLLINS 62 YEARS OLD RETIRED FROM CLOROX IN 1989 WHILE REMAINING A CONSULTANT TO THE COMPANY HIS REELECTION AS A DIRECTOR BRINGS THE BOARD TO 13 MEMBERS 9301210161 930121 ESCADA FILES WITH SEC TO SELL ST JOHN STAKE IN A PUBLIC OFFERING DORNACH GERMANY ESCADA AG FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL ITS 80 INTEREST IN ST JOHN KNITS INC IRVINE CALIF IN AN INITIAL PUBLIC OFFERING UNDER THE TERMS OF THE OFFERING ESCADA A MARKETER OF WOMEN'S DESIGNER APPAREL WOULD SELL ABOUT 68 MILLION COMMON SHARES AT AN OFFERING PRICE BETWEEN 14 AND 17 A SHARE OR BETWEEN 952 MILLION AND 1156 MILLION ESCADA LAST WEEK DISCLOSED THAT IT WAS LOOKING FOR INVESTORS TO PURCHASE ITS STAKE IN ST JOHN KNITS IN ORDER TO REDUCE ITS DEBT WHICH ANALYSTS BELIEVE HAS TRIPLED SINCE 1990 TO ROUGHLY 330 MILLION MARKS 205 MILLION THE COMPANY DIDN'T INDICATE IT PLANNED A PUBLIC OFFERING ESCADA WHICH IS TRADED ON THE GERMAN STOCK EXCHANGES HAS BEEN HURT BY HIGH EXPENSES FROM ITS RECENT WORLDWIDE EXPANSION AND FALLING CONSUMER DEMAND FOR LUXURY GOODS THE COMPANY RECENTLY DISCLOSED IT WOULD POST WIDERTHANEXPECTED LOSSES OF AS MUCH AS 613 MILLION ON SALES OF MORE THAN 800 MILLION IN THE FISCAL YEAR ENDED OCT 31 1992 ESCADA MARKETS APPAREL UNDER BRAND NAMES SUCH AS ESCADA LAUREL AND CRISCA AND ALSO OPERATES 110 BOUTIQUES WORLDWIDE AFTER THE PROPOSED SALE ST JOHN KNITS WILL HAVE 81 MILLION COMMON SHARES OUTSTANDING WITH THE REMAINING SHARES HELD BY ROBERT E GRAY AND MARIE ST JOHN GRAY COFOUNDERS OF THE COMPANY ESCADA PURCHASED THE 30YEAROLD MAKER OF WOMEN'S DESIGNER APPAREL FROM THE GRAYS IN 1989 FOR 507 MILLION THE FILING SAID ST JOHN KNITS WHICH ALSO OPERATES 11 BOUTIQUES WAS ONE OF ESCADA'S STRONGEST BUSINESSES IN FISCAL 1992 ST JOHN KNITS POSTED AN OPERATING PROFIT OF 8 MILLION ON SALES OF 802 MILLION ACCORDING TO THE FILING LAST YEAR ST JOHN KNITS DID ABOUT 553 OF ITS BUSINESS WITH THREE RETAIL CHAINS SAKS FIFTH AVENUE NEW YORK NEIMAN MARCUS DALLAS AND NORDSTROM INC SEATTLE 9301210159 930121 INTERNATIONAL ARNOTTS LTD'S PROFIT MORE THAN DOUBLED FOR FISCAL FIRST HALF SPECIAL TO THE WALL STREET JOURNAL SYDNEY AUSTRALIA ARNOTTS LTD THE COOKIE AND CRACKER MAKER THAT IS A TAKEOVER TARGET OF CAMPBELL SOUP CO REPORTED THAT PROFIT MORE THAN DOUBLED FOR THE FIRST HALF ENDED DEC 31 NET INCOME ROSE TO 533 MILLION AUSTRALIAN DOLLARS US358 MILLION FROM A229 MILLION A YEAR EARLIER HOWEVER DISCOUNTING SPECIAL FINANCIAL ITEMS PROFIT WAS UP 33 TO A374 MILLION FROM A281 MILLION SALES FELL 6 TO A3637 MILLION FROM A3868 MILLION ARNOTTS HAS RESTRUCTURED ITS BUSINESS AND SOLD NONCORE ASSETS IN THE PAST YEAR AFTER ADJUSTING TO TAKE ACCOUNT OF BUSINESSES NO LONGER OWNED SALES ROSE 67 BISCUIT SALES VOLUME IN AUSTRALIA WAS STEADY DESPITE THE CONTINUING POOR STATE OF THE ECONOMY THE COMPANY SAID BILL PURDY ARNOTTS CHAIRMAN SAID THE RESULT SUPPORTS THE INDEPENDENT DIRECTORS' RECOMMENDATION THAT SHAREHOLDERS SHOULD REJECT CAMPBELL SOUP'S REVISED OFFER OF A950 FOR THEIR SHARES HE REITERATED THAT ARNOTTS EXPECTS PROFIT FOR THE FULL YEAR TO RISE TO A677 MILLION FROM A401 MILLION CAMPBELL SOUP'S REVISED OFFER VALUES ALL OF ARNOTTS AT A132 BILLION ALTHOUGH CAMPBELL IS RESTRICTED BY THE AUSTRALIAN GOVERNMENT FROM OWNING 100 OF ARNOTTS 9301210158 930121 BUSINESS BRIEF AMERICA WEST AIRLINES WINTER SALE ON LEISURE FARES IS EXTENDED UNTIL FEB 17 AMERICA WEST AIRLINES PHOENIX EXTENDED ITS WINTER SALE WHICH CUTS PRICES FOR LEISURE FARES BY AS MUCH AS 30 THE CARRIER STRUGGLING TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS SAID THE PRICE REDUCTIONS APPLY TO NONREFUNDABLE TICKETS PURCHASED BY FEB 17 TRAVEL MUST TAKE PLACE BY MAY 15 AND VARIOUS RESTRICTIONS APPLY INCLUDING A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY THE STEEPEST DISCOUNT IS AVAILABLE FOR TRAVEL ON THE NONPEAK TIMES MONDAYS TUESDAYS WEDNESDAYS AND THROUGH NOON THURSDAYS EARLIER THIS MONTH AMERICA WEST ANNOUNCED A SIMILAR 30 FARE CUT FOR TRAVEL THROUGH MARCH 10 FOR TICKETS PURCHASED BY TODAY THE EXTENSION OF THE SALE FOR LEISURE TRAVELERS UNDERSCORES THE SOFTNESS IN THAT MARKET GENERALLY OTHER CARRIERS HAVE MATCHED AMERICA WEST ON ROUTES WHERE COMPETITION IS HEATED 9301210157 930121 BUSINESS BRIEF BRINKER INTERNATIONAL INC COMPANY SAYS NET ROSE 41 IN 2ND PERIOD ENDED DEC 31 BRINKER INTERNATIONAL INC DALLAS SAID NET INCOME IN THE SECOND QUARTER ENDED DEC 31 JUMPED 41 ATTRIBUTING THE STRONG RESULTS IN PART TO PEOPLE HAVING EXTENDED WEEKENDS DURING THE HOLIDAYS NET ROSE TO 106 MILLION OR 34 CENTS A SHARE FROM 75 MILLION OR 24 CENTS A SHARE A YEAR EARLIER THE GAIN ACCOMPANIED A SURGE IN REVENUE WHICH GREW 25 TO 1519 MILLION FROM 122 MILLION IN THE SECOND QUARTER OF 1991 THE COMPANY SAID SAMESTORE SALES ROSE 44 A LOT OF PEOPLE HAD FOURDAY WEEKENDS WHICH HELPS RESTAURANT ACTIVITY SAID DEBRA SMITHART CHIEF FINANCIAL OFFICER MS SMITHART ALSO SAID THAT THE CHRISTMAS RETAIL BOOM HELPED BRINKER BECAUSE A LOT OF OUR RESTAURANTS ARE IN HEAVILY TRAFFICKED RETAIL AREAS 9301210156 930121 BUSINESS BRIEF PUBLIC SERVICE CO OF COLORADO UTILITY SEEKS RATE INCREASE OF 816 MILLION A YEAR PUBLIC SERVICE CO OF COLORADO FILED WITH THE PUBLIC UTILITIES COMMISSION OF COLORADO FOR A 816 MILLION ANNUAL RATE INCREASE THE UTILITY SAID IT IS ALSO FILING TO INCLUDE COSTS FOR CHANGES IN THE TREATMENT OF POSTRETIREMENT BENEFITS IF THE COMMISSION FINDS THAT THESE COSTS SHOULD BE REFLECTED IN UTILITY RATES THEN RATES COULD RISE AN ADDITIONAL 164 MILLION ANNUALLY BRINGING THE TOTAL RISE TO 98 MILLION A COMPANY SPOKESMAN SAID IT IS UNCLEAR HOW THE COMMISSION WILL DECIDE CONCERNING THE TREATMENT OF POSTRETIREMENT BENEFIT COSTS THE UTILITY ALSO HAS ASKED FOR A RATE OF RETURN ON EQUITY OF 13 THE RATE REQUESTED IS A MAXIMUM RETURN THE COMPANY CAN EARN ON ITS UTILITY BUSINESS AND IS NOT GUARANTEED SAID PUBLIC SERVICE IF THE RATE INCREASE IS GRANTED RATES FOR ALL CONSUMER GROUPS WILL INCREASE ABOUT 4 FOR ELECTRICITY AND 609 FOR NATURAL GAS COMMERICAL CUSTOMERS WOULD SEE A SIMILAR PERCENTAGE INCREASE 9301210155 930121 UNICORP SETS PACT WITH US TO PROVIDE FUNDS TO BANK UNIT TORONTO UNICORP ENERGY CORP SAID IT REACHED AN AGREEMENT WITH US FEDERAL REGULATORS TO INJECT US15 MILLION OF NEW CAPITAL INTO THE COMPANY'S LINCOLN SAVINGS BANK SUBSIDIARY CLEARING THE WAY FOR THE SALE OF THE NEW YORKBASED UNIT UNICORP A HOLDING COMPANY CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN SAID THE AGREEMENT ALSO REQUIRES IT TO PROVIDE LINCOLN WITH A 15 MILLION STANDBY CAPITAL FACILITY THE FUNDS WILL BE EXCHANGED FOR NEW LINCOLN PREFERRED SHARES LINCOLN WHICH OPERATES 15 BANK BRANCHES WITH ASSETS TOTALING 23 BILLION SAID THAT AS PART OF THE AGREEMENT FEDERAL REGULATORS APPROVED A PLAN AIMED AT RESTORING THE BANK'S CAPITAL TO REQUIRED LEVELS BY THE END OF 1994 UNICORP SAID ITS AGREEMENT ENDS MORE THAN TWO YEARS OF LEGAL JOUSTING WITH THE OFFICE OF THRIFT SUPERVISION A FEDERAL AGENCY ABOUT WHETHER UNICORP WAS OBLIGATED TO MAINTAIN LINCOLN'S CAPITAL LEVEL UNICORP SAID THE SETTLEMENT WILL ALLOW THE COMPANY TO GET ON WITH ITS LONGDELAYED PLAN TO SELL THE UNIT WHILE AVOIDING FURTHER LEGAL COSTS LINCOLN'S CAPITAL STOCK WILL BE HELD IN TRUST UNTIL A BUYER IS FOUND UNICORP SAID MEANWHILE UNICORP SAID NATIONAL BANK OF CANADA AGREED TO RESTRUCTURE ITS INDIRECT INTEREST IN LINCOLN AS A RESULT NATIONAL BANK BASED IN MONTREAL WILL HOLD A 25 DIRECT INTEREST IN LINCOLN UNICORP WILL DIRECTLY AND INDIRECTLY HOLD 65 OF THE UNIT AND THE REMAINING 10 WILL BE HELD BY LINCOLN'S MANAGEMENT 9301210154 930121 WHO'S NEWS OPPENHEIMER & CO OPPENHEIMER & CO NEW YORK KEITH H KRETSCHMER 58 YEARS OLD WAS NAMED MANAGING DIRECTOR AND WILL OPEN A BOSTON OFFICE FOR THIS SECURITIES BROKERAGE AND INVESTMENT BANKING COMPANY MR KRETSCHMER WAS FORMERLY A SENIOR MANAGING DIRECTOR IN CHARGE OF THE BOSTON OFFICE OF BEAR STEARNS & CO 9301210153 930121 TECHNOLOGY WR GRACE TO BUILD PLANT IN INDIA TO MAKE PESTICIDES BOCA RATON FLA WR GRACE & CO SAID IT AND INDIABASED PARTNER PJ MARGO PRIVATE LTD HAVE BEGUN PRODUCTION OF A FACILITY DESIGNED AND BUILT TO PRODUCE A NATURAL PESTICIDE BASED ON THE SEED OF THE INDIAN NEEM TREE THE NEEMTREE SEED GRACE SAID PRODUCES AN EXTRACT KNOWN AS AZADIRACHTIN WHICH KILLS OVER 200 TYPES OF INSECT PESTS AS WELL AS SOME OTHER CROP PREDATORS THE EXTRACTS AREN'T HARMFUL TO BIRDS OR MAMMALS AND SPECIALTYCHEMICAL MAKER GRACE AND A LICENSEE CURRENTLY SELL BIOPESTICIDES BASED ON THE NEEM EXTRACT FOR THE PAST TWO YEARS GRACE HAS BEEN PROCESSING THE NEEM SEEDS ON A LIMITED BASIS AT A PILOT PLANT IN MARYLAND THE STARTUP PHASE OF THE FACTORY IN TUMKUR IN THE INDIAN STATE OF KARNATAKA INVOLVES PRODUCTION OF EXTRACTS IN COMMERCIAL QUANTITIES WITH A CAPACITY OF 20 TONS PER DAY OF NEEM SEED THE SECOND PHASE TURNING THE EXTRACTS INTO BIOPESTICIDES IS CURRENTLY IN THE PLANNING STAGE FOR FUTURE IMPLEMENTATION IN INDIA GRACE SAID 9301210152 930121 WHO'S NEWS USX CORP USX CORP PITTSBURGH CHARLES G CARSON III 50 YEARS OLD WAS NAMED VICE PRESIDENT ENVIRONMENTAL AFFAIRS OF US STEEL GROUP A UNIT OF USX DR CARSON FORMERLY GENERAL MANAGER TIN MILL PRODUCTS FOR US STEEL GROUP SUCCEEDS PHILIP X MASCIANTONIO 63 WHO RETIRED USX HAS INTERESTS IN STEEL OIL NATURAL GAS AND OTHER BUSINESSES 9301210151 930121 LTV AMENDS PLAN OF REORGANIZATION EXPECTS MORE LOSSES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL CLEVELAND LTV CORP FILED AN AMENDED REORGANIZATION PLAN THAT BRINGS THE STEELMAKER CLOSER TO EMERGING FROM BANKRUPTCYCOURT PROCEEDINGS BUT ANTICIPATES CONTINUING LOSSES FOR THE COMPANY TERMS OF THE LATEST PLAN FILED IN US BANKRUPTCY COURT IN NEW YORK ARE SIMILAR TO THOSE OF LTV'S PREVIOUS PLAN FILED LAST FEBRUARY VALUES OF SOME PAYMENTS TO CREDITORS ARE HIGHER BECAUSE OF AN IMPROVEMENT IN STEEL STOCK PRICES AND BECAUSE OF A LARGERTHANEXPECTED PRICE TAG FOR THE COMPANY'S AEROSPACE UNIT WHICH WAS SOLD TO LORAL CORP CARLYLE GROUP AND NORTHROP CORP FOR 476 MILLION THE NEW PLAN ALSO REFLECTS PREVIOUSLY ANNOUNCED AGREEMENTS WITH THE UNITED STEELWORKERS UNION WHICH THE COMPANY SAYS WILL BOOST ITS CASH FLOW BY 60 MILLION A YEAR AND THE PENSION BENEFIT GUARANTY CORP UNDER WHICH LTV WILL MAKE AN INITIAL CONTRIBUTION OF 850 MILLION TO THREE STEEL PENSION PLANS LTV WHICH HAS BEEN IN CHAPTER 11 BANKRUPTCYCOURT PROCEEDINGS SINCE 1986 SAID IT HOPES TO EMERGE FROM COURT PROTECTION ON JUNE 30 FOLLOWING A HEARING ON ITS PLAN SCHEDULED FOR FEB 17 AND A CREDITOR VOTE KC CALDABAUGH THE COMPANY'S CHIEF FINANCIAL OFFICER SAID ALL LTV'S CREDITOR COMMITTEES SUPPORT THE FILING THOUGH THEY HAVEN'T YET BACKED THE PLAN FORMALLY THE COMPANY MUST STILL SETTLE A DISPUTE WITH HOLDERS OF ITS J&L STEEL MORTGAGE BONDS RAYMOND L SHAPIRO A LAWYER FOR THE LTV PARENT COMPANY'S UNSECURED CREDITORS SAID THERE WILL BE A LOT MORE CONSENSUS AMONG CREDITORS FOR THE NEW PLAN WHICH THE UNSECURED CREDITOR COMMITTEE LABELED A FAIR COMPROMISE AS PART OF THE DISCLOSURE LTV SAID IT EXPECTS NET LOSSES OF 15 MILLION FOR THIS YEAR'S SECOND HALF AND 40 MILLION FOR THE FULL YEAR IN 1994 HOWEVER IT EXPECTS TO MAINTAIN A POSITIVE CASH FLOW AFTER JUNE 30 1993 AND IT EXPECTS NET INCOME OF 20 MILLION IN 1995 AND 32 MILLION IN 1996 IT ALSO FORECAST MODEST INCREASES IN SALES BECAUSE OF HIGHER PRICES AND SHIPMENTS THE STEELMAKER EXPECTS AVERAGE PAYMENTS OF ABOUT 150 MILLION A YEAR TOWARD ITS UNFUNDED PENSION LIABILITY IT WILL ALSO HAVE CAPITAL EXPENDITURES AVERAGING ABOUT 300 MILLION A YEAR LTV SAID IT EXPECTS TO ISSUE BETWEEN 73 MILLION AND 76 MILLION COMMON SHARES AT 1542 TO 1911 OF THE NEW STOCK 50 MILLION SHARES WILL BE DISTRIBUTED TO UNSECURED CREDITORS AS IN THE PREVIOUS PLAN HOLDERS OF LTV'S CURRENT COMMON AND PREFERRED STOCK WILL RECEIVE WARRANTS VALUED AT 5 MILLION TO PURCHASE SHARES OF NEW COMMON STOCK OVER FIVE YEARS AT A PRICE TO BE ESTABLISHED SIX MONTHS AFTER THE REORGANIZATION SECURED CREDITORS WILL STILL RECEIVE 100 OF THEIR ALLOWED CLAIMS IN CASH THE NEW ACCORD ESTIMATES THAT SENIOR GENERAL AND SUBORDINATED CREDITORS OF THE PARENT COMPANY AND ALL OF ITS UNITS WILL RECOVER A SLIGHTLY HIGHER PERCENTAGE OF THEIR ALLOWED CLAIMS 9301210150 930121 RJR NABISCO TO CLOSE PLANT NEW YORK RJR NABISCO HOLDINGS CORP SAID ITS NABISCO FOODS GROUP PLANS TO CLOSE ITS PENNSAUKEN NJ MARGARINE MANUFACTURING PLANT IN APRIL AFFECTING 104 EMPLOYEES THE EXACT NUMBER OF EMPLOYEES WHO WILL BE LAID OFF HASN'T YET BEEN DETERMINED A SPOKESMAN SAID THE COMPANY SAID PRODUCTION WILL BE PICKED UP AT ITS RECENTLY RELOCATED AND EXPANDED INDIANAPOLIS MARGARINE PLANT 9301210149 930121 CREDIT MARKETS TREASURY PRICES EASE AS BOND PLAYERS DISPLAY WAITANDSEE ATTITUDE ON CLINTON ECONOMIC PLAN BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE BOND MARKET DIDN'T SEEM AS ENTHRALLED WITH INAUGURATION DAY AS WERE MANY PEOPLE IN THE NATION'S CAPITAL AND MOST TREASURY PRICES DROPPED SLIGHTLY THE BENCHMARK 30YEAR BOND FOR EXAMPLE DROPPED MORE THAN 1/4 POINT TO 103 15/32 TO YIELD 733 UP FROM 730 ON TUESDAY THE 10YEAR NOTE DROPPED LESS THAN 1/4 POINT TO 98 11/32 TO YIELD 659 UP FROM 657 BUT THE TWOYEAR NOTE ROSE LESS THAN 1/8 POINT TO 100 15/32 TO YIELD 435 DOWN FROM 439 MR CLINTON'S INAUGURATION DID NOT HAVE AN EFFECT ON THE MARKET YESTERDAY SAID BRYAN R SCARFONE HEAD OF GOVERNMENT TRADING AT SBC GOVERNMENT SECURITIES A UNIT OF SWISS BANK TRADERS SAID THAT THE BOND MARKETS HAVE ADOPTED A WAITANDSEE ATTITUDE WITH REGARD TO THE NEW PRESIDENT AND ARE UNLIKELY TO REACT UNTIL HE STARTS ANNOUNCING THE DETAILS OF HIS ECONOMIC PLAN BOND INVESTORS WILL BE WATCHING FOR CLUES AS TO HOW PRESIDENT CLINTON WILL FULFILL CAMPAIGN PROMISES TO HELP REVIVE THE ECONOMY WHILE REDUCING THE FEDERAL BUDGET DEFICIT AT THE SAME TIME INVESTORS SEEM TO HAVE FACTORED IN THE LIKELIHOOD OF A 20 BILLION TO 30 BILLION SHORTTERM SPENDING PACKAGE THOUGH PRESIDENT CLINTON HAS MADE NO FORMAL ANNOUNCEMENT OF SUCH A PACKAGE THE NEW PRESIDENT WILL HAVE A CHANCE TODAY TO MAKE AT LEAST A SYMBOLIC SHOW OF HIS COMMITMENT TO REDUCING THE FEDERAL BUDGET DEFICIT A BIG CONCERN OF THE BOND MARKETS PRESIDENT CLINTON MUST DECIDE BY TODAY WHETHER TO ADJUST DEFICIT CEILINGS WRITTEN INTO THE 1990 DEFICITREDUCTION LAW THUS RENDERING THE CEILINGS MEANINGLESS OR LEAVE THE CEILINGS UNCHANGED AND RISK ACROSSTHEBOARD SPENDING CUTS IN THE FUTURE THE DECISION IS CONSIDERED MORE SYMBOLIC THAN CONCRETE BECAUSE IT WOULDN'T INVOLVE MUCH MONEY NEVERTHELESS THE BOND MARKETS WILL BE WATCHING CLOSELY BECAUSE IT WILL BE AN EARLY INDICATOR OF WHERE THE PRESIDENT STANDS ON THE ISSUE OF DEFICIT REDUCTION THE 1990 BUDGET LAW DID AWAY WITH SUCH FIXED CEILINGS FOR THE DEFICIT THROUGH THE END OF THIS FISCAL YEAR BUT IMPOSES THEM AGAIN FOR FISCAL 1994 WHICH BEGINS OCT 1 AND THE FOLLOWING YEAR THE SYSTEM OF DEFICIT LIMITS AND AUTOMATIC SPENDING CUTS WAS ORIGINALLY ESTABLISHED BY THE 1985 GRAMMRUDMAN LAW THE 1990 BUDGET LAW GIVES MR CLINTON A ONETIME CHANCE TO ADJUST THE CEILINGS TO REFLECT CHANGES IN THE ECONOMY AND TECHNICAL ESTIMATES THAT HAVE OCCURRED SINCE JANUARY OF LAST YEAR HIS TRANSITION AIDES HAVE SAID THAT HE WILL PROBABLY MAKE THE ADJUSTMENT THUS MAKING THE CEILINGS IRRELEVANT MORE GENERALLY THE CURRENT BUDGET RULES ARE LIKELY TO BE REWORKED TO REFLECT THE CHANGED BUDGET PRIORITIES CLINTON BRINGS TO THE PRESIDENCY COMMENTED SHEARSON LEHMAN BROTHERS POLITICAL ANALYST THOMAS D GALLAGHER IN A COMPANY NEWSLETTER ASPECTS LIKE THE DISCRETIONARY SPENDING TARGETS AND POSSIBLY THE FIREWALLS BETWEEN DEFENSE AND NONDEFENSE SPENDING FOR FISCAL 1993 WILL BE ALTERED EARLY TRADING IN THE TREASURY MARKET YESTERDAY WAS A CONTINUATION OF THE RECENT TREND WHERE LONGER MATURITIES OUTPERFORMED SHORT AND INTERMEDIATETERM ISSUES HOWEVER THE BUYING THAT HAD BEEN HELPING LONGER ISSUES IN THE PAST FEW SESSIONS FADED RESULTING IN A MODEST CORRECTION BY DAY'S END AMONG THE POSITIONS BEING UNWOUND WERE WHAT IS KNOWN AS CURVE FLATTENING TRADES WHEN THE DIFFERENCE BETWEEN YIELDS ON LONGTERM SECURITIES AND SHORTTERM SECURITIES NARROWS THAT IS KNOWN AS A FLATTENING YIELD CURVE TRADERS WHO HAD SOUGHT TO PROFIT FROM THAT MOVEMENT HAD BOUGHT THE 30YEAR TREASURY BOND AND SOLD TREASURYS WITH SHORTER MATURITIES BUT A FEW REVERSED THEMSELVES YESTERDAY THE SPREAD BETWEEN THE TWOYEAR NOTE AND THE 30YEAR BOND WIDENED SLIGHTLY TO 297 PERCENTAGE POINTS BY LATE IN THE DAY THE SPREAD HAD NARROWED SHARPLY BY 014 PERCENTAGE POINT TUESDAY TO FINISH AT 294 PERCENTAGE POINTS PRESIDENT CLINTON'S INAUGURAL ADDRESS YIELDED NO NEW SPECIFICS WHICH APPEARED TO DISAPPOINT SOME IN THE MARKET AND MAY HAVE ADDED TO THE SELLING AT THE LONG END IT WAS BASICALLY A CHEERLEADING SPEECH BUT THE MARKET WAS HOPING FOR SOMETHING MORE THAN THAT AND IT DIDN'T HAPPEN SAID MICHAEL STRAUSS CHIEF ECONOMIST AT YAMAICHI INTERNATIONAL AMERICA INC TODAY IS EXPECTED TO BE ANOTHER RELATIVELY QUIET SESSION THE FEDERAL RESERVE IS SLATED TO RELEASE ITS SOCALLED BEIGE BOOK REPORT ON ECONOMIC ACTIVITY AND THE TREASURY WILL ANNOUNCE THE SIZE OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS ANALYSTS EXPECT THE TWOYEAR NOTE OFFERING TO TOTAL 155 BILLION AND THE FIVEYEAR TO TOTAL 1125 BILLION BOTH UNCHANGED FROM THE DECEMBER AUCTIONS DUE TO THE FEDERAL HOLIDAY YESTERDAY THE WEEKLY JOBLESS CLAIMS FIGURES AND THE FEDERAL RESERVE'S MONEY SUPPLY AND BANKING DATA WILL BE DELAYED ONE DAY UNTIL TOMORROW CITICORP SOLD BONDS TO OVERWHELMING INVESTOR DEMAND YESTERDAY WHILE JUNK BONDS GAINED 1/4 TO 1/2 POINT IN STRONG BUYING INVESTMENTGRADE ISSUES MEANWHILE FINISHED FLAT TO DOWN 1/8 POINT IN MODERATE ACTIVITY DESPITE MORE THAN 27 BILLION OF NEW CORPORATE ISSUANCE SO FAR THIS YEAR THE GAPS BETWEEN THE YIELDS FOR CORPORATE BONDS AND TREASURYS HAVE HELD STEADY TRADERS SAY SUGGESTING THAT INVESTORS' APPETITE FOR CORPORATE BONDS CONTINUES TO MATCH SUPPLY THE PRIMARY MARKET TURNED IN ANOTHER STRONG SESSION WITH NEW ISSUANCE TOTALING 11 BILLION YESTERDAY'S BORROWERS INCLUDED CITICORP HJ HEINZ CO CHAMPION INTERNATIONAL CORP AND ALABAMA POWER CO A UNIT OF SOUTHERN CO DESPITE A NEARLY 017 PERCENTAGE POINT DROP IN LONGTERM INTEREST RATES SINCE JAN 9 ISSUANCE REMAINS CONFINED TO NOTES MATURING IN SEVEN TO 10 YEARS HOWEVER SOME SYNDICATE OFFICIALS SAID THAT COULD CHANGE IF THE TREASURY 30YEAR BOND FALLS BELOW 725 THE 30YEAR BOND YIELDED 733 AS OF LATE YESTERDAY AMONG SPECIFIC JUNK ISSUES BONDS OF METROGOLDWYNMAYER INC CLIMBED IN TRADING ON THE NEW YORK STOCK EXCHANGE TRADERS SAID THAT THE COMPANY IS EXPECTED TO PURCHASE AN UNSPECIFIED AMOUNT OF ITS SUBORDINATED DEBT IN THE SECONDARY MARKET BONDS OF UNISYS CORP ALSO ROSE THE COMPUTER SYSTEMS MANUFACTURER REPORTED STRONG FOURTHQUARTER EARNINGS EARLY YESTERDAY STANDARD & POOR'S CORP LATER PLACED THE COMPANY'S SENIOR AND SUBORDINATED DEBT RATINGS ON CREDITWATCH WITH POSITIVE IMPLICATIONS IN OTHER NEWS MOODY'S INVESTORS SERVICE INC SAID THE CREDIT QUALITY OF US CORPORATIONS MODERATELY IMPROVED IN 1992 AFTER A STEEP THREEYEAR SLIDE WHILE THE COUNTRY'S CORPORATE HEALTH IS EXPECTED TO REMAIN LESS THAN ROBUST IN 1993 MOODY'S ADDED THE GAP BETWEEN CORPORATE DOWNGRADES AND UPGRADES WILL CONTINUE TO NARROW CITICORP PRICED A 400 MILLION ISSUE OF 10YEAR SUBORDINATED NOTES AT PAR TO YIELD 8 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 143 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC ONE DEALER INVOLVED IN THE PRICING SAID THE OFFERING WAS ORIGINALLY EXPECTED TO TOTAL 250 MILLION BUT WAS INCREASED AFTER INVESTORS REGISTERED OVERWHELMING DEMAND ON TUESDAY CITICORP REPORTED BETTERTHANEXPECTED FOURTHQUARTER EARNINGS OF 280 MILLION OR 53 CENTS A SHARE COMPARED WITH A LOSS OF 133 MILLION OR 53 CENTS A SHARE A YEAR EARLIER S&P SUBSEQUENTLY REVISED ITS RATINGS OUTLOOK ON CITICORP AND ITS UNITS TO STABLE FROM NEGATIVE PRICES OF MUNICIPAL BONDS ENDED HIGHER ALTHOUGH MUCH OF THE ACTION IN THE TAXEXEMPT MARKET YESTERDAY WAS IN THE PRIMARY MARKET IN SECONDARY TRADING THE NORTH CAROLINA MUNICIPAL POWER AGENCY'S 620 REVENUE BONDS OF 2018 ROSE 1/4 TO 99 1/4 TO YIELD 624 AMONG NEW ISSUES THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY'S 100 MILLION OF 84TH SERIES REVENUE BONDS WHICH WERE COMPETITIVELY PRICED WERE ALL SOLD BY THE END OF THE SESSION A DEAN WITTER REYNOLDS INC GROUP IS BELIEVED TO HAVE WON THE BONDS WITH A BID SETTING THE NET INTEREST COST TO THE ISSUER AT ABOUT 6275 INTEREST ON THE BONDS IS SUBJECT TO THE FEDERAL ALTERNATIVE MINIMUM TAX YIELDS RANGE FROM 580 IN 2008 TO 6283 IN 2028 THE PORT AUTHORITY EXPECTS TO USE PROCEEDS OF THE SALE FOR CERTAIN CAPITAL EXPENDITURES AT AIRPORT AND MARINE TERMINAL FACILITIES AND FOR THE REFUNDING OF CERTAIN OBLIGATIONS THIS IS THE FIRST TIME THE AUTHORITY HAS COME INTO THE MUNI MARKETPLACE AND SOLD BONDS SOLELY ON ITS CREDIT RATING A SMITH BARNEY HARRIS UPHAM & CO GROUP SERVED AS LEAD MANAGER OF THE OFFERING PRICES OF MORTGAGE SECURITIES ENDED SLIGHTLY LOWER AMONG SECONDARY ISSUES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 75 ISSUES FOR FEBRUARY DELIVERY ENDED 1/8 LOWER AT 100 16/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 75 ISSUES ENDED 5/32 LOWER AT 100 19/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 75 ISSUES ENDED 5/32 LOWER AT 100 12/32 ABOUT 15 BILLION OF NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE ANNOUNCED YESTERDAY BRINGING THE WEEK'S REMIC VOLUME SO FAR TO 25 BILLION THAT ISSUANCE IS IN ADDITION TO THE 35 BILLION OF STRIPS AND MODIFIABLE AND COMBINABLE SECURITIES ALSO PRICED THIS WEEK AS EXPECTED SOME 15YEAR COLLATERAL AND 8 30YEAR COLLATERAL CONTINUE TO BE POPULAR IN YESTERDAY'S ISSUANCE THE 400 MILLION FREDDIE MAC GOLD 1472 DEAL WAS BACKED BY FREDDIE MAC GOLD 15YEAR 7 SECURITIES THE 350 MILLION FANNIE MAE 1993G5 DEAL WAS BACKED BY GINNIE MAE 30YEAR 8 ISSUES AND THE 750 MILLION FANNIE MAE 199317 DEAL WAS BACKED BY FANNIE MAE 30YEAR 8 ISSUES TERENCE DONNELLY CONTRIBUTED TO THIS ARTICLE 9301210148 930121 INTERNATIONAL AUSTRALIAN BANKRUPTCY FILINGS CANBERRA AUSTRALIA THE NUMBER OF AUSTRALIANS FILING FOR PERSONAL BANKRUPTCY DECLINED 24 TO 3679 IN THE QUARTER ENDED DEC 31 FROM 3770 IN THE QUARTER ENDED SEPT 30 ACCORDING TO OFFICIAL STATISTICS THE LATEST TOTAL IS DOWN 11 FROM 4137 PERSONAL BANKRUPTCIES IN THE DECEMBER QUARTER OF 1991 9301210147 930121 SOUTHWEST AIR TO REDEEM NOTES DALLAS SOUTHWEST AIRLINES SAID IT WILL REDEEM ON MARCH 1 ALL 100 MILLION AGGREGATE PRINCIPAL AMOUNT OUTSTANDING OF THE COMPANY'S 9 NOTES DUE 1996 THE NOTES WILL BE CALLED AT A REDEMPTION PRICE OF 100 OF THEIR PRINCIPAL AMOUNT 9301210146 930121 GENENTECH POSTS RISE IN FOURTHPERIOD NET BUT A DROP FOR YEAR SOUTH SAN FRANCISCO CALIF GENENTECH INC POSTED HIGHER PROFIT FOR THE FOURTH QUARTER CAPPING A YEAR THAT SAW ITS PROFIT HALVED BY A COMBINATION OF HEAVY SPENDING AND A SLUMP IN HEARTDRUG SALES THE BIOTECHNOLOGY COMPANY REPORTED FOURTHQUARTER PROFIT OF 62 MILLION OR FIVE CENTS A SHARE COMPARED WITH NEARLY BREAKEVEN RESULTS A YEAR EARLIER WHEN SALES OF ITS HEART DRUG ACTIVASE TOOK A TUMBLE REVENUE ROSE 19 TO 142 MILLION FROM 1195 MILLION HOWEVER HEAVY INVESTMENT IN PRODUCT DEVELOPMENT AND A CONTINUED DECLINE IN SALES OF ACTIVASE DEPRESSED FULLYEAR PROFIT 53 TO 208 MILLION OR 18 CENTS A SHARE FROM 443 MILLION OR 39 CENTS A SHARE FULLYEAR REVENUE ROSE 6 TO 5443 MILLION FROM 5159 MILLION AMID GROWING SALES OF GENENTECH'S GROWTH HORMONE PROTROPIN IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S SHARES CLOSED AT 3825 DOWN 625 CENTS ACTIVASE WHICH SELLS FOR MORE THAN 2000 A DOSE HAS LONG BEEN UNDER PRESSURE FROM ITS MUCH OLDER COMPETITOR STREPTOKINASE WHICH SELLS FOR ONETENTH AS MUCH IN THE US STREPTOKINASE IS SOLD BY TWO COMPANIES ASTRA PHARMACEUTICALS PRODUCTS INC A UNIT OF AB ASTRA OF SWEDEN AND KABI PHARMACIA A UNIT OF KABIVITRUM AB ALSO OF SWEDEN SEVERAL STUDIES HAVE SUGGESTED THE TWO DRUGS ARE ROUGHLY COMPARABLE IN SAVING LIVES OF HEARTATTACK PATIENTS BUT GENENTECH HAS PROTESTED THAT POOR STUDY DESIGN LED TO INVALID CONCLUSIONS NOW GENENTECH IS SPONSORING A 40000PATIENT STUDY WHOSE RESULTS THE COMPANY EXPECTS WILL SETTLE THE QUESTION OF WHICH IS THE BETTER DRUG WHEN THE STUDY DATA ARE RELEASED IN APRIL GENENTECH'S PRESIDENT AND CHIEF EXECUTIVE G KIRK RAAB HAS SAID HE PLANS TO REVISE THE 1993 SALES OUTLOOK FOR BOTH ACTIVASE AND THE COMPANY OVERALL 9301210145 930121 ORDERS FOR MACHINE TOOLS ROSE 24 IN DECEMBER MCLEAN VA MACHINE TOOL ORDERS IN DECEMBER WERE 200 MILLION UP 24 FROM NOVEMBER'S 161 MILLION THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY SAID BUT COMPARED WITH DECEMBER 1991'S TOTAL OF 343 MILLION ORDERS FELL 42 TOTAL ORDERS FOR 1992 WERE 248 BILLION DOWN 6 FROM 264 BILLION DURING 1991 THE INDUSTRY'S BACKLOG IN DECEMBER WAS 132 BILLION DOWN 8 FROM 144 BILLION IN NOVEMBER SHIPMENTS REBOUNDED MORE SHARPLY THAN ORDERS WITH 317 MILLION IN SHIPMENTS DURING DECEMBER THE ASSOCIATION SAID UP NEARLY 50 FROM NOVEMBER'S TOTAL OF 212 MILLION AND A 123 INCREASE OVER DECEMBER 1991 TOTAL SHIPMENTS DURING 1992 WERE 259 BILLION DOWN 3 FROM 267 BILLION DURING 1991 THE ASSOCIATION SAID 1992 ORDERS FROM DOMESTIC CUSTOMERS ROSE 2 BUT THAT INCREASE WAS NOT ENOUGH TO OFFSET DECLINES IN FOREIGN ORDERS 9301210144 930121 TECHNOLOGY NOVELL CHIEF VOWS TO SETTLE SUCCESSION ISSUE THIS YEAR PROVO UTAH RAYMOND NOORDA NOVELL INC'S CHIEF EXECUTIVE OFFICER SAID HE'LL SETTLE THE ISSUE OF HIS SUCCESSOR THIS YEAR WE WILL MAKE SURE IN THE NEXT YEAR THAT WE WILL EITHER DETERMINE THE COURSE OR MAKE THE SELECTION THAT LEADS TO A NEW CEO MR NOORDA SAID MR NOORDA 67 YEARS OLD HAS HAD NO CLEARCUT SECONDINCOMMAND DESPITE WORKING BEYOND THE USUAL RETIREMENT AGE OF A CHIEF EXECUTIVE THE LACK OF AN HEIR APPARENT HAS WORRIED ANALYSTS WHO SAY NOVELL NEEDS STRONG LEADERSHIP AS IT ENTERS A PERIOD OF INTENSE COMPETITION WITH MICROSOFT CORP THE WORLD'S LARGEST SOFTWARE MAKER THE EXECUTIVES WHO REPORT TO MR NOORDA WHILE RESPECTED ARE MUCH YOUNGER AND CONSIDERED TO BE LACKING THE STATURE AND EXPERIENCE TO RUN NOVELL THE LEADING SUPPLIER OF NETWORKING SOFTWARE THE SUCCESSION QUESTION ALSO HAS FUELED SPECULATION THAT MR NOORDA MAY SEEK A MERGER WITH ANOTHER LARGE SOFTWARE MAKER MR NOORDA HAS FLATLY REJECTED ANY INTEREST IN A MERGER WHILE CALLING THE QUESTION OF HIS SUCCESSOR A SERIOUS ISSUE MR NOORDA INSISTED THAT HIS CURRENT MANAGEMENT TEAM COULD CARRY ON WITHOUT HIM IF I WERE TO PASS AWAY TOMORROW THEY WOULDN'T MISS ME AT LEAST NOT FOR A YEAR HE SAID 9301210143 930121 TENNECO'S CHAIRMAN HAS BRAIN CANCER BUT SAYS HE'LL STAY ON JOB INDEFINITELY BY ROBERT JOHNSON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON MICHAEL WALSH TENNECO INC'S 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER REVEALED THAT HE HAS BRAIN CANCER BUT HE INSISTED HE'S FEELING WELL AND WILL STAY ON THE JOB INDEFINITELY APPEARING ROBUST DURING AN INTERVIEW IN HIS OFFICE BUT DISPLAYING A PARTIALLY SHAVED HEAD FROM A RECENT BIOPSY PROCEDURE MR WALSH SAID NOBODY HAS HEARD A WORD FROM THE FAT LADY' I'LL BEAT THIS TENNECO UNDER MR WALSH HAS RECENTLY BEGUN TO REAP THE BENEFITS OF A MASSIVE RESTRUCTURING HE BEGAN UPON ARRIVING AT THE COMPANY 18 MONTHS AGO PRUDENTIAL SECURITIES ANALYST DAVID FLEISCHER FORECASTS TENNECO WILL SOON REPORT FOURTHQUARTER EARNINGS OF ABOUT 50 MILLION OR 35 CENTS A COMMON SHARE COMPARED WITH A LOSS OF 26 MILLION OR 24 CENTS A SHARE A YEAR EARLIER TENNECO'S STOCK SLUMPED IN REACTION TO MR WALSH'S EARLY MORNING ANNOUNCEMENT IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE TENNECO SHARES WERE DOWN 2 TO 40 STILL SOME ANALYSTS SAID THE IMMEDIATE NEWS COULD HAVE BEEN WORSE FOR INVESTORS HE WAS WIDELY THOUGHT TO BE LEAVING THE COMPANY FOR A CLINTON ADMINISTRATION JOB AT LEAST HE'S STAYING AT TENNECO FOR NOW SAID MR FLEISCHER THE PRUDENTIAL ANALYST MR WALSH WAS RECRUITED FROM UNION PACIFIC RAILROAD TO TURN TENNECO AROUND THE CONGLOMERATE'S DISPARATE INTERESTS INCLUDE FARM EQUIPMENT AUTOMOTIVE PARTS CHEMICALS AND SHIPBUILDING HE HAS TESTED THE LIMITS OF THE SLASHANDBUILD REMEDY SO OFTEN PRESCRIBED FOR CORPORATE AMERICA HE TOOK OVER A SLUMPING FARFLUNG COMPANY WITH 90000 EMPLOYEES WORLDWIDE AND QUICKLY TRIMMED 6000 JOBS HE CLOSED THE EXECUTIVE DINING ROOM SOLD THE COMPANY YACHT AND HALVED TO 80 CENTS A SHARE A QUARTERLY DIVIDEND THAT TENNECO HADN'T EARNED ENOUGH TO COVER FOR YEARS ASSERTING HIS TASK IS FAR FROM FINISHED MR WALSH SAID WE'RE TRYING TO BUILD A WORLDCLASS INDUSTRIAL MODEL HE CLOSED A TELEPHONE NEWS CONFERENCE BY TELLING REPORTERS I'VE GOT TO WIND UP IT'S A BUSY DAY THOSE REMARKS CAME JUST ONE DAY AFTER LEARNING THAT HE HAS A TUMOR WHICH HE SAID DOCTORS DIAGNOSED AS BEING AT AN EARLY STAGE AND TREATABLE WITH RADIATION AND CHEMOTHERAPY HE SAID HE EXPECTS THE THERAPY TO LAST 11 MONTHS WILL I LEARN TO WORK A 50HOUR WEEK INSTEAD OF AN 80HOUR ONE YES HE SAID HE PLANNED TO SHORTEN HIS WORKWEEK SOON ANYWAY ALTHOUGH HE VOWED TO RECOVER MR WALSH CONCEDED THAT HIS DOCTORS HAVE ADVISED HIM THE MEDIAN SURVIVAL RATE FOR HIS CONDITION IS FIVE TO SIX YEARS WITH HALF DOING BETTER THAN THAT AND SOME MUCH BETTER MR WALSH SAID HE ISN'T EXPERIENCING ANY SYMPTOMS FROM THE CANCER EXCEPT FOR A SLIGHT LIMP IN HIS LEFT LEG HE FIRST NOTICED THE LIMP EARLY LAST FALL AND THOUGHT IT WAS FROM AN EARLIER DOWNHILLSKIING INJURY BUT HIS DOCTORS COULDN'T FIND ANYTHING WRONG WITH HIS LEG OR SPINE AND DECIDED TO EXAMINE HIS BRAIN AS THE PROBLEM'S ORIGIN HIS BIOPSY RESULTS WEREN'T KNOWN UNTIL TUESDAY WHEN HE TOLD HIS FAMILY AND THEN TENNECO DIRECTORS HE INFORMED TENNECO DIVISION MANAGERS IN A TELEPHONE CONFERENCE CALL LATE TUESDAY AND ORDERED HIS STAFF IN AT 7 AM YESTERDAY TO PREPARE A STATEMENT FOR ANALYSTS AND REPORTERS AFTER DISCUSSIONS WITH TENNECO'S BOARD HE SAID IT IS OUR JOINT DECISION TO MAKE THIS INFORMATION PUBLIC AT THE EARLIEST MOMENT AT WHICH THE RELEVANT FACTS ARE KNOWN MR WALSH SAID THAT DURING HIS THERAPY HE EXPECTS TO CONTINUE SHARING MANAGEMENT AUTHORITY WITH HIS HANDPICKED CHIEF OPERATING OFFICER DANA G MEAD 56 IT MAY MEAN I'LL WORK 85 HOURS A WEEK INSTEAD OF 80 SAID MR MEAD MR MEAD WHO JOINED TENNECO IN MARCH WAS FORMERLY EXECUTIVE VICE PRESIDENT AT INTERNATIONAL PAPER CO IN PURCHASE NY WHERE HE WENT THROUGH A RESTRUCTURING SIMILAR TO TENNECO'S IN THE 1980S MR WALSH CONFIRMED WALL STREET RUMORS THAT HE HAD BEEN UNDER CONSIDERATION FOR A CLINTON ADMINISTRATION JOB SAYING AN ASSISTANT TO THE NEW PRESIDENT CONTACTED HIM LAST NOVEMBER MR WALSH SAID HE HEADED OFF THE INQUIRY BEFORE IT BECAME AN OFFER 9301210142 930121 BUSINESS BRIEF QUANTUM CHEMICAL CORP NEW YORK FIRM WILL MOVE HEADQUARTERS TO CINCINNATI QUANTUM CHEMICAL CORP WHICH HAS BEEN SEEKING TO REVERSE A CYCLE OF LOSSES SAID IT IS MOVING ITS CORPORATE OFFICES TO CINCINNATI FROM NEW YORK QUANTUM SAID IT IS TAKING A ONETIME PRETAX CHARGE OF 8 MILLION ON 1992 EARNINGS RELATED TO THE MOVE A SPOKESWOMAN SAID QUANTUM EXPECTS TO SAVE 4 MILLION A YEAR FOLLOWING THE RELOCATION THE RELOCATION IS THE LATEST EFFORT BY THE MAKER OF POLYETHYLENE PLASTIC TO CUT COSTS QUANTUM NEEDS TO COVER 260 MILLION IN INTEREST PAYMENTS DUE THIS YEAR ON 25 BILLION DEBT FROM A 1989 RESTRUCTURING THE COMPANY SAID THE RELOCATION IS AN EFFORT TO CONSOLIDATE ITS WORK FORCE QUANTUM SAID ITS LARGEST DIVISION USI WITH 850 EMPLOYEES IS LOCATED IN CINCINNATI WHILE ONLY ABOUT 100 EMPLOYEES WORK IN THE NEW YORK HEADQUARTERS THE COMPANY EXPECTS TO OFFER ABOUT 70 OF THE NEW YORK WORKERS JOBS IN CINCINNATI 9301210141 930121 BUSINESS BRIEF UST INC FOURTHPERIOD NET ROSE 21 ON 16 INCREASE IN VOLUME UST INC SAID STRONG SALES OF WINE AND MOIST SMOKELESS TOBACCO PUSHED NET INCOME UP 21 IN THE FOURTH QUARTER UST OF GREENWICH CONN POSTED NET INCOME OF 799 MILLION OR 36 CENTS A SHARE COMPARED WITH 663 MILLION OR 30 CENTS A SHARE A YEAR AGO SALES INCREASED 16 TO 2727 MILLION FROM 2355 MILLION THE COMPANY REPORTED SALES INCREASES IN ALL SEGMENTS ESPECIALLY IN WINE AND TOBACCO UST PRODUCES SKOAL AND COPENHAGEN MOIST SMOKELESS TOBACCO AND COLUMBIA CREST WINES UST REPORTED ITS 32ND CONSECUTIVE ANNUAL INCREASE IN NET INCOME FOR THE YEAR NET ROSE 18 TO 3126 MILLION OR 141 A SHARE FROM 2659 MILLION OR 118 A SHARE A YEAR EARLIER SALES INCREASED 16 TO 104 BILLION FROM 9073 MILLION 9301210140 930121 INTERNATIONAL TOYOTA NISSAN POST LOWER DOMESTIC SALES FOR DECEMBER YEAR SPECIAL TO THE WALL STREET JOURNAL TOKYO TOYOTA MOTOR CORP AND NISSAN MOTOR CO SAID THEIR DOMESTIC VEHICLE PRODUCTION AND SALES AS WELL AS EXPORTS DECLINED FROM THE YEAREARLIER LEVELS FOR BOTH DECEMBER AND ALL OF 1992 OVERSEAS PRODUCTION ROSE AT TOYOTA JAPAN'S BIGGEST CAR MAKER DOMESTIC VEHICLE SALES FELL 49 IN DECEMBER TO 159182 UNITS FROM THE 1991 LEVEL OF THAT TOTAL PASSENGER CAR SALES DECLINED 91 TO 114108 UNITS WHILE TRUCK AND BUS SALES ROSE 76 TO 45074 UNITS TOYOTA'S DOMESTIC PRODUCTION IN THE MONTH FELL 57 TO 306599 UNITS THE COMPANY EXPORTED A TOTAL 131923 VEHICLES IN DECEMBER DOWN 77 TOYOTA'S OVERSEAS PRODUCTION IN DECEMBER INCREASED 28 TO 59601 UNITS AND GREW 14 IN THE FULL CALENDAR YEAR TO 764292 UNITS FOR NISSAN DOMESTIC SALES IN DECEMBER DECLINED 46 TO 83626 UNITS DOMESTIC PRODUCTION AT NISSAN PLUMMETED 19 TO 154475 UNITS OF WHICH PASSENGER CAR PRODUCTION WAS DOWN 21 TO 126315 UNITS EXPORTS BY NISSAN TOTALED 85328 UNITS DOWN 97 NISSAN'S OVERSEAS PRODUCTION SOARED 53 TO 76501 UNITS IN DECEMBER WHILE GROWING 15 IN 1992 TO 863920 UNITS 9301210139 930121 MONEY FUND YIELDS FALL ON SEASONAL INCREASE IN ASSETS BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL YIELDS ON MONEYMARKET MUTUAL FUNDS CONTINUED TO SLIDE IN THE LATEST WEEK IN RESPONSE TO SEASONAL FACTORS THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS FELL TO 281 FROM 287 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE LATEST SLIDE BRINGS YIELDS TO EARLY DECEMBER LEVELS OFFSETTING YEAREND INCREASES WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID YIELDS COULD FALL A BIT MORE IN THE NEXT WEEK OR TWO BEFORE FLATTENING AND PERHAPS RISING SLIGHTLY YIELDS ON TAXABLE MONEY FUNDS TYPICALLY SLIP IN THE FIRST FEW WEEKS OF THE NEW YEAR IN RESPONSE TO HUGE CASH INFLOWS THIS FOLLOWS A DECLINE IN ASSETS AT YEAR END AS INSTITUTIONAL INVESTORS MOVE TO HAVE MORE CASH ON THEIR BALANCE SHEETS REDUCING THE DEMAND FOR SHORTTERM SECURITIES AND PUSHING UP YIELDS ASSETS OF ALL 567 TAXABLE FUNDS INCLUDED IN MONEY FUND REPORT ROSE 1 BILLION IN THE LATEST WEEK TO 4822 BILLION ALTHOUGH ASSETS OF 147 FUNDS OPEN ONLY TO INSTITUTIONS DECLINED 1856 MILLION TO 1694 BILLION IN THE PREVIOUS WEEK ASSETS JUMPED 217 BILLION INCLUDING 184 BILLION GOING INTO INSTITUTIONAL FUNDS AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS LENGTHENED BY A DAY TO 59 DAYS INDICATING THAT PORTFOLIO MANAGERS DON'T EXPECT YIELDS TO RISE MUCH IN COMING WEEKS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS SLID TO 277 FROM 283 ACCORDING TO MONEY FUND REPORT FORMERLY KNOWN AS IBC/DONOGHUE'S MONEY FUND REPORT THE AVERAGE 30DAY SIMPLEYIELD EASED TO 284 FROM 286 WHILE THE AVERAGE 30DAY COMPOUND YIELD DECLINED TO 288 FROM 290 YIELDS ON TAXEXEMPT MONEY FUNDS FELL MORE SHARPLY IN RESPONSE TO SEASONAL FACTORS THE AVERAGE SEVENDAY COMPOUND YIELD FOR INSTANCE DROPPED TO 173 FROM 195 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 240 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 251 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 307 TAXFREE FUNDS DECLINED 7766 MILLION IN THE LATEST WEEK TO 1033 BILLION FOLLOWING A 67 BILLION INFLOW THE WEEK BEFORE AVERAGE MATURITY REMAINED AT 55 DAYS MR FRANK OF MONEY FUND REPORT SAID TAXFREE YIELDS COULD START MOVING UP AS EARLY AS NEXT WEEK 9301210138 930121 SOTHEBY'S GETS 24 MILLION FOR DISPUTED MEMLING ART NEW YORK WHEN OLD MASTER DEALERS THINK THEY HAVE SPOTTED A FIND PRICES CAN GO THROUGH THE ROOF TAKE THE OLD MASTERS AUCTION LAST WEEK AT SOTHEBY'S HOLDINGS INC IN NEW YORK WHICH INCLUDED A PORTRAIT OF JACOB OBRECHT A 15TH CENTURY COMPOSER AND CLERIC SOTHEBY'S IDENTIFIED IT AS A POSSIBLE WORK BY HANS MEMLING AN EXTREMELY POPULAR PORTRAIT AND ALTARPIECE PAINTER IN THE 15TH CENTURY NETHERLANDS BUT THE AUCTION HOUSE NOTED THAT THERE IS A DIFFERENCE OF OPIONION AMONG EXPERTS DIRK DE VOS A GERMAN MUSEUM CURATOR WHO IS CURRENTY PREPARING AN EXHIBITION OF MEMLING'S WORK BELIEVES IT'S A WORK OF THE ARTIST ALTHOUGH AT ONE POINT HE QUESTIONED WHETHER THE HANDS WERE DONE BY ANOTHER ARTIST AND THE DATE AT THE BOTTOM OF THE ORIGINAL FRAME 1496 WAS TWO YEARS AFTER MEMLING'S DEATH ALTHOUGH THAT COULD BE THE TIME THAT A COMPANION PAINTING WAS COMPLETED AND BOTH WERE SHIPPED TO THE OWNER CITING BOTH THE CONTROVERSY AND THE PORTRAIT'S QUALITY SOTHEBY'S SET A PRESALE PRICE ESTIMATE OF 400000 TO 600000 DEALERS OBVIOUSLY WERE MORE CONFIDENT IN A FIERCE FIVEWAY BIDDING WAR THE PAINTING SOLD FOR 24 MILLION 9301210137 930121 WHO'S NEWS MACANDREWS & FORBES HOLDINGS INC MACANDREWS & FORBES HOLDINGS INC NEW YORK SUSAN L SOLOMON 41 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AT ANDREWS GROUP INC A UNIT OF THIS HOLDING COMPANY FOR CONSUMERPRODUCTS FINANCIALSERVICES PUBLISHING AND ENTERTAINMENT CONCERNS SHE WILL BE RESPONSIBLE FOR SEEKING WAYS TO EXPAND THE UNIT'S MEDIA AND ENTERTAINMENT HOLDINGS WHICH INCLUDE MARVEL ENTERTAINMENT GROUP AND FLEER CORP HER POSITION IS NEWLY CREATED MS SOLOMON HAD BEEN A PRINCIPAL AT TRILLIUM MEDIA LTD A PRIVATE MEDIA HOLDING COMPANY IN NEW YORK 9301210136 930121 LETTERS TO THE EDITOR WHY REWARD ILLEGAL IMMIGRANTS ALTHOUGH THE MOVEMENT TO LIMIT GENEROUS PUBLIC BENEFITS TO ILLEGAL IMMIGRANTS IS GROWING CALIFORNIA FEELS ANTIIMMIGRANT TREMORS BY TIM W FERGUSON EDITORIAL PAGE DEC 29 THERE IS LITTLE THAT LOCAL OFFICIALS CAN DO TO ALLEVIATE THIS PROBLEM WITHOUT ACTION BY WASHINGTON CONGRESS AND THE COURTS MANDATE STATES TO PROVIDE FREE HEALTH CARE AND EDUCATION WITHOUT REGARD TO IMMIGRATION STATUS YET THE FEDERAL GOVERNMENT FAILS TO PROVIDE THE NECESSARY FUNDS TO CARRY OUT THESE EXPENSIVE PROGRAMS FOR EXAMPLE UNDER MEDICAID THE COST OF WHICH IS SPLIT 5050 BY THE STATE AND THE FEDERAL GOVERNMENT THE STATE MUST PAY FOR THE EMERGENCY HEALTH SERVICES OF ILLEGALS AS A RESULT MANY CROSS THE BORDER TO GO TO EMERGENCY ROOMS IN SOUTHERN CALIFORNIA FOR MINOR MEDICAL CARE CHECKUPS AND TO GIVE BIRTH IN ADDITION THE 1982 SUPREME COURT DECISION IN PLYLER V DOE REQUIRES THAT STATES TAKE CHILDREN OF ILLEGAL IMMIGRANTS INTO THE PUBLIC SCHOOL SYSTEM A STUDY BY SAN DIEGO STATE UNIVERSITY FOUND THAT THIS COSTS THE STATE MORE THAN 606 MILLION ANNUALLY IT IS IRONIC THAT SCHOOLS CAN DEMAND TO KNOW WHETHER A STUDENT LIVES WITHIN THE SCHOOL DISTRICT YET THEY CANNOT INQUIRE ABOUT ONE'S IMMIGRATION STATUS PUBLIC BENEFITS ARE A PERVERSE INCENTIVE THAT ATTRACTS ILLEGAL IMMIGRATION TO CALIFORNIA THIS IS A TERRIBLE BURDEN ON OVERTAXED RESIDENTS AND THEREFORE HARD TO JUSTIFY WITH THE ANTICIPATED REDUCTION IN ILLEGAL IMMIGRATION THAT WILL RESULT FROM THE NORTH AMERICAN TRADE AGREEMENT NAFTA ELIMINATING BENEFITS FOR ILLEGAL IMMIGRANTS WILL REDUCE THEIR NUMBERS FURTHER ENTERING THE US ILLEGALLY SHOULD NOT BE REWARDED WITH FINANCIAL OR OTHER BENEFITS ALTHOUGH MR FERGUSON DOES NOT SPECIFICALLY MENTION REFUGEES ADMITTED UNDER US POLICIES OR PEOPLE GRANTED POLITICAL ASYLUM BY OUR FEDERAL GOVERNMENT SHOULD WE ASSUME THAT THESE GROUPS ARE INCLUDED IN THE LEGAL IMMIGRANT CATEGORY OF LOS ANGELES COUNTY'S REPORT ON THE HIGH COSTS TO CITIZEN TAXPAYERS OF PROVIDING PUBLIC SERVICES TO NONCITIZENS IF PUBLIC SERVICES ARE TO BE CUT OFF TO ILLEGAL IMMIGRANTS WHAT ABOUT THE REFUGEES AND THOSE PEOPLE GRANTED POLITICAL ASYLUM WHO MAY BE UNEMPLOYED OR LIVING IN POVERTY HEAVY CONCENTRATIONS OF SUCH LEGAL IMMIGRANTS IN ANY COMMUNITY ARE JUST AS MUCH OF A FINANCIAL BURDEN TO LOCAL GOVERNMENTS AS ARE ILLEGAL IMMIGRANTS SINCE OUR FEDERAL GOVERNMENT HAS THE RESPONSIBILITY OF DEALING WITH IMMIGRATION IT SHOULD BE MADE TO BEAR THE COSTS OF PROVIDING PUBLIC SERVICES TO IMMIGRANTS LEGAL AND ILLEGAL UNTIL THEY BECOME ELIGIBLE FOR US CITIZENSHIP SUCH A NATIONAL POLICY WOULD SPREAD THE COSTS OF RENDERING PUBLIC SERVICES TO IMMIGRANTS MORE EQUITABLY AMONG ALL AMERICANS REGARDLESS OF WHERE THE IMMIGRANTS LIVE WE USE FEDERAL FUNDS TO PROVIDE HUMANITARIAN AID TO NONCITIZENS ABROAD WHY CAN'T WE DO THE SAME FOR NONCITIZENS WHO FOR WHATEVER REASON LIVE WITHIN THESE UNITED STATES MR FERGUSON'S ARTICLE IS FOR THE MOST PART A WELLRESEARCHED AND ACCURATE ANALYSIS OF THE IMMIGRANT PROBLEM IN CALIFORNIA AND THE NATION HOWEVER HIS REFERENCE TO MY REELECTION CAMPAIGN NEEDS TO BE CORRECTED FAR FROM CREDITING MY REELECTION TO MY LEADERSHIP ROLE ON REGAINING CONTROL OVER OUR BORDERS AS MR FERGUSON WROTE I WOULD SAY MY POSITION HAS HURT RATHER THAN HELPED ME POLITICALLY THAT'S BECAUSE THE LIBERAL MEDIA ATTACK ANY PUBLIC OFFICIAL WHO DARES TO RAISE THIS ISSUE INEVITABLY LEVELING CHARGES OF RACISM THE HEAT IS SO INTENSE THAT MOST POLITICIANS ARE AFRAID TO TOUCH THE ISSUE EVEN WHEN THEY ARE CONVINCED IT IS THE RIGHT THING TO DO DESPITE THE HEAT HOWEVER I PLAN TO CONTINUE WORKING TO IMPLEMENT SENSIBLE LEGISLATION TO HELP US REGAIN CONTROL OVER OUR BORDERS WHILE STILL PERMITTING A GENEROUS SYSTEM OF LEGAL IMMIGRATION 9301210135 930121 INTERNATIONAL BRIEF LUFTHANSA AG FIRM SLATES INCENTIVE PLAN FOR TRANSFERRING EMPLOYEES LUFTHANSA AG IS OFFERING A PROGRAM TO ENTICE EMPLOYEES TO TRANSFER VOLUNTARILY FROM HIGHERPAYING JOBS AT ITS INTERNATIONAL CARRIER AND TO ACCEPT LOWERPAYING JOBS AT LUFTHANSA EXPRESS ITS REGIONALAIRLINE SUBSIDIARY HOWEVER IF THERE AREN'T VOLUNTARY TRANSFERS TO FILL LUFTHANSA EXPRESS'S RANKS LUFTHANSA EXPRESS WILL RECRUIT NEW EMPLOYEES AND THE HIGHERPAID LUFTHANSA EMPLOYEES WILL BE PLACED SOMEWHERE ELSE OR LET GO AS PART OF THE INCENTIVE PROGRAM TO TRANSFER TO LUFTHANSA EXPRESS FROM LUFTHANSA WILL BE A ONETIME BONUS PAYMENT THAT IS CALCULATED BASED ON SENIORITY LUFTHANSA EXPRESS WHICH WILL EVENTUALLY HANDLE ALL OF LUFTHANSA'S DOMESTIC ROUTES WAS FORMED AS PART OF LUFTHANSA'S EFFORTS TO CUT ITS LABOR COSTS EMPLOYEES OF LUFTHANSA EXPRESS AREN'T REPRESENTED BY LUFTHANSA'S UNIONS 9301210134 930121 INTERNATIONAL RUSSIA RETURNS TO TIGHT MONETARY POLICY IN ATTEMPT TO CURB SOARING INFLATION BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THOUGH STRONG OPPOSITION REMAINS THE RUSSIAN GOVERNMENT IS RETURNING TO A TIGHT MONETARY POLICY THAT WILL REDUCE CREDITS AND RAISE INTEREST RATES IN AN EFFORT TO COMBAT SOARING INFLATION THE PRINCIPAL REASON PRICES ARE GOING THROUGH THE ROOF WITH INFLATION AT A BREATHTAKING 10 A WEEK AND EXPECTED TO REACH 55 TO 60 IN JANUARY ALONE RUSSIA'S 1992 INFLATION RATE HIT 2000 THUS EVEN GOVERNMENT OFFICIALS WHO HAVE PUBLICLY ADVOCATED GOVERNMENT LOANS AND SUBSIDIES TO KEEP INEFFICIENT FACTORIES PRODUCING AND WORKERS IN THEIR JOBS ARE NOW CONVINCED THAT THE RISK OF HYPERINFLATION OUTWEIGHS THOSE FACTORS BORIS FYODOROV DEPUTY PRIME MINISTER FOR FINANCE SAID AT A NEWS CONFERENCE ECONOMISTS DIFFER ON THEIR DEFINITIONS OF HYPERINFLATION ALTHOUGH MANY SAY THAT ANYTHING BEYOND 50 A MONTH QUALIFIES ANATOLY CHUBAIS ANOTHER DEPUTY PRIME MINISTER AT THE NEWS CONFERENCE SAID THAT IF NOTHING IS DONE TO CURB PRICES AND THE FLOW OF CREDITS TO UNPROFITABLE FACTORIES INFLATION WILL REACH DISASTEROUS LEVELS BY MIDYEAR IF WE DON'T STOP IT IT WILL RUIN EVERYTHING WE HAVE ACHIEVED HE SAID PRIME MINISTER VIKTOR CHERNOMYRDIN WHOSE COMMITMENT TO ANTIINFLATION MEASURES HASN'T BEEN CLEAR IS APPARENTLY SUPPORTING HIS YOUNGER DEPUTIES ACCORDING TO THE ITARTASS NEWS AGENCY HE CALLED GOVERNMENT MINISTERS TOGETHER TO URGE THEM TO MAKE SURE THEIR ACTIONS AND RULINGS DON'T CONTRIBUTE TO INFLATION AND CALLED FOR URGENT MEASURES TO ATTACK THE PROBLEM MR FYODOROV SAID THE GOVERNMENT APPROVED THE BASIC ANTIINFLATION CONCEPT ONLY AFTER HEATED DEBATE HE SAID IT IS SIMILAR OVERALL TO THE ORIGINAL PROGRAM OF FORMER ACTING PRIME MINISTER YEGOR GAIDAR A RADICAL REFORMER WHOSE TIGHT CREDIT POLICIES FORCED HIM FROM OFFICE LAST MONTH BUT EVEN MR GAIDAR'S EFFORTS HAD BEEN COMPROMISED AND BEFORE HE LEFT OFFICE THE GOVERNMENT WAS PUMPING OUT CREDITS THAT FUELED THE CURRENT INFLATION AND SENT THE RUBLE INTO A STEADY DECLINE ACCORDING TO MR FYODOROV SUPPORT FROM THE CENTRAL BANK WHICH WILL BE RESPONSIBLE FOR RESTRAINING CREDITS ISN'T SURE HE SAID PARLIAMENT ALSO PROBABLY WON'T SUPPORT ASPECTS OF THE PROGRAM AND HE SAID SOME MINISTRY OFFICIALS DISAGREE BECAUSE THEY ARE PROPRODUCTION FOR THE SAKE OF PRODUCTION THEY FORGET THAT THE POINT OF PRODUCTION IS FOR THE PEOPLE HE ADDED WE SHALL HAVE TO ARGUE TO HAVE OUR PROPOSALS ACCEPTED WE ARE READY FOR THE STRUGGLE MR FYODOROV SAID THE GOVERNMENT NOW HAS AGREED TO SET A GOAL OF 5 INFLATION BY YEAR END AND A BUDGET DEFICIT THAT IS 5 OF GROSS NATIONAL PRODUCT OR THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY BOTH TARGETS ARE IN LINE WITH THE PROGRAM MR GAIDAR WORKED OUT LAST YEAR WITH THE INTERNATIONAL MONETARY FUND THE MOST CRUCIAL AND CONTROVERSIAL PART OF THE PROGRAM WILL BE SHUTTING OFF CREDITS TO UNPROFITABLE ENTERPRISES MR FYODOROV SAID INTEREST RATES ON GOVERNMENT LOANS WILL BE RAISED AND A PROGRAM ENACTED TO DECIDE WHICH ENTERPRISES SHOULD GET STATE SUPPORT ENTERPRISES WILL BE JUDGED ON THEIR COSTEFFECTIVENESS AND THEIR FINANCIAL DISCIPLINE HE SAID SOME PEOPLE MAY BE SACKED THERE WILL BE BANKRUPTCY PROCEDURES HE SAID 9301210133 930121 MANOR CARE REDEEMS NOTES THE NOTES WERE CALLED AT 1025 OF THEIR PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO THE REDEMPTION DATE THE REDEMPTION WILL RESULT IN A CHARGE OF ABOUT 3 MILLION AGAINST EARNINGS FOR THE FISCAL THIRD QUARTER ENDING FEB 28 THE HEALTH CARE SERVICES AND LODGING CONCERN SAID 9301210132 930121 WESTERN GERMAN RETAIL RESULTS WIESBADEN WESTERN GERMAN RETAIL SALES FELL A REAL OR INFLATIONADJUSTED 32 IN NOVEMBER FROM A YEAR EARLIER THE FEDERAL STATISTICS OFFICE REPORTED NOVEMBER NOMINAL SALES NOT ADJUSTED FOR INFLATION WERE DOWN 12 THE STATISTICS AGENCY REPORTED NOVEMBER HAD 24 SHOPPING DAYS ONE LESS THAN NOVEMBER 1991 SALES FOR THE FIRST 11 MONTHS OF THE YEAR WERE UP A NOMINAL 01 COMPARED WITH THE FIRST 11 MONTHS OF 1991 THE AGENCY ADDED HOWEVER THEY WERE DOWN 25 IN REAL TERMS 9301210131 930121 ECONOMY SURVEYS FINDS MANY COMPANIES EXPECT TO RAISE CAPITAL SPENDING THIS QUARTER BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR CORPORATIONS SEE SALES PICKING UP AND EARNINGS REMAINING HEALTHY AS THEY STEP UP CAPITAL SPENDING PLANS IN THE CURRENT QUARTER A NEW SURVEY OF CHIEF FINANCIAL OFFICERS SHOWS THE SURVEY ALSO INDICATES LITTLE GROWTH IN EMPLOYMENT AND INVENTORY LEVELS CONSISTENT WITH OTHER FORECASTS OF A STEADILY IMPROVING BUT NOT ROBUST ECONOMY THE SURVEY CONDUCTED IN MIDDECEMBER BY AT KEARNEY INC A CHICAGO MANAGEMENT CONSULTING FIRM COVERED 39 INDUSTRIAL AND SERVICE COMPANIES WITH COMBINED ANNUAL REVENUE OF ABOUT 220 BILLION THE FINANCIAL OFFICERS OF THE 39 COMPANIES EXPECT ON AVERAGE THAT SALES WILL INCREASE 67 IN THE FIRST QUARTER FROM A YEAR EARLIER UP FROM A 48 GROWTH RATE IN THE FOURTH QUARTER THEY EXPECT GROWTH IN OPERATING PROFITS TO TAPER OFF TO 99 FROM A YEAR EARLIER WHILE CASH FLOW IS EXPECTED TO RISE BY 118 LIKE EVERYONE ELSE WE'RE INVESTING IN COMPUTER SYSTEMS TO DO THINGS MORE EFFICIENTLY SAYS SURVEY PARTICIPANT FRANK STOTZ SENIOR VICE PRESIDENTFINANCE OF BAUSCH & LOMB INC HE EXPECTS THE COMPANY WILL CONTINUE TO HOLD SPENDING AT ABOUT FOURTHQUARTER LEVELS ENABLING IT TO CONTINUE BOOSTING SALES WHILE KEEPING EMPLOYMENT LEVELS STEADY MR STOTZ SAID SALES OF BAUSCH & LOMB'S HEALTHCARE AND SUNGLASS PRODUCTS ARE STRONG HE SAID THE ONLY REASON HE IS CAUTIOUSLY OPTIMISTIC RATHER THAN BULLISH IS THE POSSIBILITY OF A WORLDWIDE RECESSION HE SAID SALES IN GERMANY AND JAPAN HAVE DECLINED FROM A TORRID TO AN ACCEPTABLE RATE ALSO FEELING BETTER ABOUT THE ECONOMY IS MICHAEL PASQUALE CHIEF FINANCIAL OFFICER OF HERSHEY FOODS CORP WHO EXPECTS ANOTHER RECORD YEAR IN 1993 HE SAID CAPITAL SPENDING WILL REMAIN ABOVE NORMAL LEVELS ALTHOUGH NOT QUITE AS HIGH AS IN 1992 WHEN HERSHEY ADDED CAPACITY AND MODERNIZED SEVERAL PLANTS THE GENERAL BUSINESS CLIMATE IS BETTER SAYS MR PASQUALE IT MEANS PRESIDENT CLINTON DOESN'T HAVE TO BE SO CONCERNED WITH FISCAL STIMULUS WHICH IMPACTS INTEREST RATES THE FINANCIAL OFFICERS SURVEYED ALSO EXPECT THAT RELIANCE ON SHORTTERM DEBT WILL DECLINE SLIGHTLY IN THE CURRENT QUARTER DUE TO AN 118 RISE IN CASH FLOW AND AN INCREASE OF 54 IN LONGTERM DEBT NOT GAMBLING ON SHORTTERM INTEREST RATES IS A SIGN OF NEW PRUDENCE AT COMPANIES AS THEY FUND OUT LONGERTERM SAYS NEAL SOSS CHIEF ECONOMIST AT FIRST BOSTON CORP HE EXPECTS THAT THE PROJECTION BY THE FINANCE OFFICERS OF A 10 GAIN IN FIRSTQUARTER PROFITS WILL RING TRUE FOR THE ENTIRE YEAR MR SOSS ALSO PROJECTS STRONG CAPITAL SPENDING INCREASES IN WHAT HE CALLS A PERIOD OF JOBLESS PROSPERITY LED BY LABORSAVING EQUIPMENT SPENDING THE CAPITAL SPENDING PLANS ARE AN ENCOURAGING SIGN SAID DAVID WYSS RESEARCH DIRECTOR OF DRI MCGRAW HILL INC HIS FORECASTS CALL FOR AN 11 GAIN IN SUCH SPENDING THIS QUARTER ABOUT HALF OF THE AVERAGE FORECAST BY THE CHIEF FINANCIAL OFFICERS WHICH WAS SKEWED BY THE BIG GAINS SEEN BY SOME MR WYSS VIEWED THE SURVEY RESULTS ON SALES AND CASH FLOW AS PRETTY COMPARABLE WITH HIS EXPECTATIONS ALTHOUGH HE BELIEVES FIRSTQUARTER PROFITS WILL RISE MORE THAN 15 MANY ECONOMISTS AND COMPANY FINANCE OFFICIALS AGREE THAT INVENTORIES WILL REMAIN AT LOW LEVELS DESPITE THE EXPECTED SALES INCREASES BESIDES INTRODUCING JUSTINTIME INVENTORY CONTROL TECHNIQUES MANY COMPANIES AREN'T WORRIED THAT INFLATION WILL HEAT UP THUS AVOIDING THE NEED TO STOCK INVENTORIES IN ADVANCE SAY ECONOMISTS 9301210130 930104 YEAREND WHAT WAS NEWS CLINTON WINS US ECONOMY STRUGGLES TO REBOUND JAPAN CUTS ITS DISCOUNT RATE TO 375 DOWN THREEQUARTERS OF A PERCENTAGE POINT GM'S BOARD OUSTS CHAIRMAN ROBERT STEMPEL AS HEAD OF THE EXECUTIVE COMMITTEE REPLACING HIM WITH OUTSIDE DIRECTOR JOHN SMALE NORIEGA IS CONVICTED OF EIGHT DRUG AND RACKETEERING CHARGES THE FED EASES CREDIT BY PUSHING DOWN THE FEDERAL FUNDS RATE PAID BY BANKS ON LOANS FROM OTHER BANKS BY ONEFOURTH POINT TO 375 OLYMPIA & YORK NAMES FORMER CHYSLER VICE CHAIRMAN GERALD GREENWALD PRESIDENT OF THE REAL ESTATE GIANT OLIVETTI CHAIRMAN CARLO DE BENEDETTI IS CONVICTED IN ITALY OF AIDING A FRAUDULENT BANKRUPTCY IN BANCO AMBROSIANO'S 1982 COLLAPSE HANS DIETRICH GENSCHER RESIGNS AS GERMANY'S FOREIGN MINISTER AFTER 18 YEARS IN THE POST EFFECTIVE MAY 17 MACY'S CHAIRMAN EDWARD FINKELSTEIN RESIGNS FIDELITY INVESTMENTS' MORRIS SMITH QUITS AS MANAGER OF ITS HUGE MAGELLAN MUTUAL FUND OLYMPIA & YORK MOVES TO PUT ITS HUGE CANARY WHARF OFFICE PROJECT INTO COURT ADMINISTRATION THE EQUIVALENT OF CHAPTER 11 AIRLINES WIN A SUPREME COURT DECISION THAT BLOCKS STATE OFFICIALS FROM REGULATING AIRFARE ADVERTISING KODAK CAN BE SUED BY INDEPENDENT SEVICE COMPANIES OVER ITS EFFORTS KEEP THEM FROM FIXING KODAK COPIERS OR SELING PARTS FOR THE COMPANY'S PRODUCTS THE SUPREME COURT RULES TIME WARNER CHAIRMAN STEVEN ROSS TAKES A LEAVE OF ABSENCE BECAUSE OF A SETBACK IN HIS SEVENMONTH BATTLE AGAINST PROSTATE CANCER CALIFORNIA'S PROPOSITION 13 TAX CAP IS UPHELD BY THE US SUPREME COURT KEVIN AND IAN MAXWELL ARE ARRESTED ON CHARGES LINKED TO THE ALLEGED LOOTING TO THEIR LATE FATHER'S MEDIA EMPIRE BEFORE AND AFTER HIS DEATH FREIGHT RAILROADS HALT OPERATIONS IN RESPOINSE TO A STRIKE AGAINST ONE RAIL LINE CAUSING AMTRAK TO SUSPEND MUCH OF ITS SERVICE BUT THREE AMTRAK UNIONS DELAY A STRIKE KEEPING ITS BUSY NORTHEAST CORRIDOR OPEN BRITISH PETROLEUM'S CHAIRMAN ROBERT HORTON RESIGNS AFTER DIRECTORS EXPRESS CONCERNS ABOUT THE COMPANY'S MANAGEMENT JAPAN'S NOMURA SECURITIES PLANS TO ELIMINATE 2000 JOBS ONESIXTH OF ITS JAPANESE STAFF OVER FIVE YEARS THE FED FINES SHEIK KHALID BIN MAHFOUZ THE FORMER HEAD OF SAUDI ARABIA'S BIGGEST COMMERCIAL BANK 170 MILLION FOR ALLEGED BREACHES OF US BANKING LAWS IBM SAYS ITS STAFF LIKELY TO SHRINK BY AT LEAST 32000 PEOPLE OR 9 MUCH MORE THAN PROJECTED IN THE WAKE OF AN EMPLOYEE BUYOUT PLAN NORTHWEST AIRLINES AND KLM ROYAL DUTCH AIRLINES WHICH OWNS 49 OF NORTHWEST AGREE TO OPERATE AS IF THEY WERE A SINGLE CARRIER GPA REACHES A TENTATIVE ACCORD WITH AIRCRAFT MAKERS THAT WOULD LET THE IRISH JETLEASING COMPANY DELAY RECEIVING 5 BILLION IN PLANES IT HAD ORDERED FOR DELIVERY BY THE YEAR 2000 IBM IS TAKING 21 BILLION IN WRITEOFFS MOSTLY IN ITS CHIPMAKING BUSINESS PLUS 14 BILLION IN CHARGES MUCH MORE THAN PREVIOUSLY ESTIMATED TO COVER THE COST OF STAFF CUTS PENNZOIL AGREES TO SWAP 117 BILLION OF ITS CHREVORON STOCK FOR SOME OF CHEVRON'S US OIL AND GAS RESERVES MARRIOTT PLANS TO SPLIT INTO TWO COMPANIES SEPARATING ITS HEAVILY INDEBTED REAL ESTATE OPERATIONS FROM ITS MORE PROMISING HOTEL MANAGEMENT BUSINESS STEMPEL QUITS AS CHIEF EXECUTIVE AND CHAIRMAN OF GENERAL MOTORS MAZDA SAYS IT WILL HALT DEVELOPMENT OF ONE OF TWO LUXURY CAR MODELS AND CANCELS PLANS TO SET UP A LUXURYCAR DEALER NETWORK IN NORTH AMERICA PROSECUTORS IN JAPAN SAY SEVEN TOP LIBERAL DEMOCRATIC PARTY MEMBERS INCLUDING THE NEW HEAD OF THE RULING'S PARTY'S LARGEST FACTION MADE DIRECT OR INDIRECT ATTEMPTS FIVE YEARS AGO TO SILENCE RIGHTISTS WITH POSSIBLE GANGSTER TIES GM WARNS 21200 LAIDOFF BLUECOLLAR EMPLOYEES THAT THEIR INCOMESECURITY BENEFITS MAY EXPIRE IN JANUARY RUSSIA AND BRITAIN SIGN THE FIRST FRIENDSHIP TREATY BETWEEN THE TWO NATIONSL SINCE 1766 FED CHIEF GREENSPAN WON'T RESIGN DESPITE SPECULATION THAT HE WOULD DO SO AFTER BUSH'S LOSS A SPOKESMAN SAYS GREENSPAN'S TERM EXPIRES IN 1996 THE PERCENTAGE OF STOCKS HELD BY INDIVIDUAL INVESTORS FELL TO A RECORD 497 IN THE SECOND QUARTER DOWN FROM 841 IN 1965 AND 71 IN 1980 SWEDEN SAYS IT WILL LET THE KRONA FLOAT FREELY NATO BEGINS A BLOCKADE OF THE FORMER YUGOSLAVIA IN A BID TO END THE FIGHTING IN BOSNIA ERNST & YOUNG AGREES TO PAY A RECORD 400 MILLION TO SETTLE CHARGES THAT THE ACCOUNTING FIRM INADEQUATELY AUDITED FOUR S&LS THAT SUBSEQUENTLY FAILED AT A COST OF 66 BILLION ERNST'S INSURERS WILL PAY FOR ALL BUT 100 MILLION OF THE SETTLEMENT AUDITED FOUR S&LS THAT SUBSEQUENTLY FAILED AT A COST OF 66 BILLION ERNST'S INSURERS WILL PAY FOR ALL BUT 100 MILLION OF THE SETTLEMENT WESTINGHOUSE PLANS TO DISPOSE OF ITS AILING CREDIT UNIT RESULTING IN A 113 BILLION FOURTHQUARTER CHARGE AND WILL TRY TO RAISE ABOUT 3 BILLION BY SELLING FOUR BUSINESSES WESTINGHOUSE ALSO SLASHES ITS DIVIDEND BY 44 GENERAL MOTORS' DEBT IS DOWNGRADED BY MOODY'S AMERICAN RE PLANS TO GO PUBLIC LESS THAN TWO MONTHS AFTER A KKR GROUP BOUGHT THE REINSURER FROM AETNA RUSSIA DEFAULTS FOR THE FIRST TIME ON USBACKED GRAIN LOANS JAPANESE JOB SEEKERS OUTNUMBERED THE NATIONS'S JOB OPENINGS IN OCTOBER FOR THE FIRST TIME IN 4 1/2 YEARS THE SEC SUES SALOMON'S FORMER TOP GOVERNMENT BOND TRADER PAUL MOZER IN CONNECTION WITH THE FIRM'S TREASURY AUCTION VIOLATIONS FROM 1989 TO 1991 SALOMON'S FORMER CHAIRMAN JOHN GUTFREUND SETTLES CIVIL CHARGES IN THE FIRM'S TREASURY AUCTION BIDDING SCANDAL AND IS TO PAY A FINE OF 100000 NORTHWEST AIRLINES CANCELS A 35 BILLION ORDER FOR AIRBUS INDUSTRIE JETS AND DELAYS DELIVERY OF 27 BILLION IN BOEING AIRCRAFT AS PART OF A COSTREDUCTION AND REFINANCING PROGRAM A 430YEAR0LD MOSQUE IS DESTROYED IN INDIA TRIGGERING RIOTS THAT EVENTUALLY KILLED 1200 PEOPLE LOCKHEED AGREES TO BUY GENERAL DYNAMICS' MILITARY AIRCRAFT UNIT FOR 153 BILLION TIME WARNER INTENDS TO SELL SOME OF THE 3 BILLION OF INVESTMENTS IT HOLDS IN VARIOUS BUSINESSES SEARS DEBT IS DOWNGRADED BY MOODY'S NORWAY ALLOWS ITS CURRENCY TO FLOAT FREELY SPARKING A NEW ROUND OF FOREIGNEXCHANGE TURMOIL IN EUROPE FORD SAYS IT WILL REPORT A LOSS FOR 1992 AND WILL ELIMINATE NEARLY 10000 OR ALMOST 11 OF THE JOBS AT ITS EUROPEAN AUTO OPERATIONS IN 1993 TIME WARNER CHAIRMAN STEVEN ROSS DIES AT AGE 65 NONJAPANESE CHIP MAKERS HOLD 159 OF THE JAPANESE SEMICONDUCTOR MARKET IN THE THIRD QUARTER WELL SHORT OF THE 20 GOAL SET BY THE US AND JAPAN FOR THE END OF 1992 THE US SAYS 9301210129 930121 TEAMSTERS CALL FOR BOYCOTT OF HASBRO IN LABOR DISPUTE PAWTUCKET RI THE TEAMSTERS UNION CALLED FOR A BOYCOTT OF HASBRO INC OVER A LABOR DISPUTE AT A WAREHOUSE HERE AND ACCUSED THE TOY MAKER OF THREATENING TO MOVE THE JOBS TO MEXICO THE UNION CHARGED THAT LAST MONTH HASBRO LOCKED OUT 90 TRUCK DRIVERS AND WAREHOUSE WORKERS DURING CONTRACT TALKS IN A DISPUTE OVER PROPOSED LOWER WAGES FOR NEW HIRES IT SAYS HASBRO IMPLIED IT WOULD MOVE THE 400 JOBS AT THE PLANT TO MEXICO IF WAGES AREN'T CUT THE UNION SAID IT WILL PASS OUT LEAFLETS OUTSIDE STORES SELLING HASBRO TOYS AND AT THE TOY FAIR SHOW IN NEW YORK IN FEBRUARY AS WELL AS JOIN SEN PAUL WELLSTONE D MINN ON A PLANNED FACTFINDING TRIP NEXT MONTH TO INSPECT HASBRO FACILITIES AND OTHER PLANTS AT THE USMEXICAN BORDER HASBRO SAYS THAT AS THE ONLY BIG TOY MAKER WITH US PRODUCTION IT MUST HAVE WAGE RESTRAINT TO STAY COMPETITIVE A SPOKESMAN SAID THE COMPANY NEVER THREATENED TO MOVE THE JOBS TO MEXICO AND CALLED THE AFFECTED WAREHOUSE WORKERS THE HIGHESTPAID FORKLIFT OPERATORS IN THE TOY INDUSTRY HE ADDED THAT THE COMPANY DOESN'T BELIEVE THE BOYCOTT WILL AFFECT ITS BUSINESS 9301210128 930121 ROWAN EXPECTS LOSS TO NARROW HOUSTON ROWAN COS SAID IT EXPECTS TO REPORT A FIRSTQUARTER NET LOSS OF BETWEEN 6 MILLION AND 10 MILLION COMPARED WITH A YEARAGO LOSS OF 218 MILLION OR 30 CENTS A SHARE THE CONTRACT DRILLING SERVICES PROVIDER SAID IT EXPECTS QUARTERLY REVENUE TO BE IN EXCESS OF 72 MILLION COMPARED WITH YEARAGO REVENUE OF 536 MILLION 9301210127 930121 BUSINESS BRIEF FOURTH FINANCIAL CORP QUARTERLY OPERATING PROFIT LIKELY TO EXCEED ESTIMATES FOURTH FINANCIAL CORP EXPECTS TO REPORT FOURTHQUARTER OPERATING EARNINGS OF ABOUT 63 TO 64 CENTS A SHARE SLIGHTLY EXCEEDING ANALYSTS' ESTIMATES MICHAEL J SHONKA CHIEF FINANCIAL OFFICER SAID NET INCOME WAS ABOUT 49 CENTS A SHARE AFTER A CHARGE FOR RESTRUCTURING ASSOCIATED WITH ACQUISITIONS HE SAID IN AN INTERVIEW ANALYSTS EXPECTED THE WICHITA KAN BANKING COMPANY TO POST AN OPERATING PROFIT OF 60 TO 62 CENTS A SHARE FOR THE QUARTER IN THE PRIOR YEAR FOURTH FINANCIAL POSTED FOURTHQUARTER NET INCOME OF 75 MILLION OR 40 CENTS A SHARE THERE WEREN'T ANY SPECIAL CHARGES DURING THE PERIOD MR SHONKA ATTRIBUTED THE COMPANY'S IMPROVED RESULTS TO AN INCREASE IN REVENUE STRONGER NET MARGINS AND NONINTEREST INCOME AND IMPROVED CREDIT QUALITY 9301210126 930121 INTERNATIONAL BRIEF PETROFINA SA OIL FIRM SELLS ITS 23 STAKE IN TRACTEBEL TO REPAY DEBT BELGIAN OIL COMPANY PETROFINA SA SAID IT SOLD ITS ENTIRE 23 STAKE IN UTILITY COMPANY TRACTEBEL SA TO REPAY DEBT THE 317500 SHARES WERE SOLD TO INTERNATIONAL AS WELL AS BELGIAN INSTITUTIONAL INVESTORS BETWEEN DEC 3 AND YESTERDAY PETROFINA SAID TRACTEBEL'S RECENT TRADING RANGE OF AROUND 7800 BELGIAN FRANCS A SHARE GIVES THE TRANSACTIONS A TOTAL VALUE OF ABOUT 25 BILLION FRANCS 75 MILLION THIERRY DE RUDDER GENERAL MANAGER AT GROUPE BRUXELLES LAMBERT PETROFINA'S BIGGEST SHAREHOLDER SAID THE SALE WAS PART OF AN ONGOING STREAMLINING PROCESS AT PETROFINA WHICH IS SADDLED WITH ABOUT 100 BILLION FRANCS IN DEBT TRACTEBEL OPERATES ELECTRIC AND GAS UTILITIES IN BELGIUM 9301210125 930121 BUSINESS BRIEF EXTRAORDINARY GAIN RAISED UNISYS PROFIT 73 IN FOURTH PERIOD BLUE BELL PA UNISYS CORP SAID FOURTHQUARTER EARNINGS ROSE 73 REFLECTING A LARGE GAIN FOR TAX BENEFITS ON TAXLOSS CARRYFORWARDS AND HIGHERTHANEXPECTED REVENUE THE COMPUTER SYSTEMS COMPANY SAID NET INCOME WAS 1392 MILLION OR 66 CENTS A SHARE COMPARED WITH 805 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE EXTRAORDINARY GAIN AMOUNTED TO 38 MILION OR 23 CENTS A SHARE REVENUE FELL 84 TO 226 BILLION FROM 246 BILLION BECAUSE OF FEWER ORDERS FROM EUROPE JAPAN AND THE COMPANY'S PARAMAX SYSTEMS UNIT FOR THE YEAR EARNINGS AFTER ACCOUNTING FOR EXTRAORDINARY GAINS WERE 3612 MILLION OR 146 A SHARE COMPARED WITH A LOSS OF 139 BILLION OR 937 A SHARE IN 1991 THAT INCLUDED A 12 BILLION CHARGE FOR A MAJOR RESTRUCTURING REVENUE SLIPPED 32 TO 842 BILLION FROM 87 BILLION IN 1992 CASH FLOW FROM OPERATIONS EXCEEDED 11 BILLION WELL OVER OUR GOAL OF 700 MILLION SAID JAMES UNRUH CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE ADDED THAT DEBT ONCE UNISYS'S MAIN CONCERN FELL NEARLY 800 MILLION TO ABOUT 25 BILLION IN ADDITION THE COMPANY'S TWO FLAGSHIP MAINFRAME COMPUTER LINES POSTED DOUBLEDIGIT GAINS OVER 1991 UNISYS SAID ALTHOUGH THE COMPANY HAD BASED ITS 1993 BUSINESS PLAN ON FLAT REVENUE IT EXPECTS TO POST SIGNIFICANT EARNINGS GROWTH AND STRENGTHEN ITS BALANCE SHEET DURING THE YEAR DESPITE ECONOMIC WEAKNESS IN EUROPEAN AND JAPANESE MARKETS THE COMPANY'S STOCK CLOSED AT 1250 UP 625 CENTS ON ACTIVE TRADING OF 47 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE 9301210124 930121 BUSINESS BRIEF CARPENTER TECHNOLOGY CORP FIRM SAYS NET DECLINED 52 FOR ITS FISCAL SECOND PERIOD CARPENTER TECHNOLOGY CORP SAID NET INCOME FELL 52 FOR ITS FISCAL SECOND QUARTER BECAUSE OF LOWER VOLUME AND SOFT PRICES IN MOST OF ITS SPECIALTY STEEL PRODUCT LINES THE READING PA COMPANY SAID EARNINGS FELL TO 3 MILLION OR 33 CENTS A SHARE FOR THE QUARTER ENDED DEC 31 FROM 62 MILLION OR 70 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES FOR THE QUARTER WERE DOWN 83 TO 123 MILLION FROM 134 MILLION CARPENTER TECHNOLOGY SAID THE SPECIALTY STEEL LINES WERE HURT BY INVENTORY REDUCTION BY CUSTOMERS A STILLSLUGGISH RECOVERY AND HIGHER STAINLESS STEEL ROD IMPORTS BUT IT SAID JANUARY VOLUME IMPROVED COMPARED WITH ITS SECOND QUARTER FOR ITS SIX MONTHS CARPENTER SAID ITS NET INCOME FELL 19 TO 68 MILLION OR 75 CENTS A SHARE FROM 84 MILLION OR 94 CENTS A SHARE SALES ROSE TO 2624 MILLION FROM 2606 MILLION 9301210123 930121 PEPPERAND SALT WHO ARE ABLE TO CONTRADICT US THAT ALMOST MAKES ME WEEP THEY'RE A DIME A DOZEN WERE THINGS REALLY THAT CHEAP SUSPENSE MOVIES FEARJERKERS 9301210122 930121 PEOPLES TELEPHONE ENTERS PACTS MIAMI PEOPLES TELEPHONE CO SAID ITS ANNUAL REVENUE WILL INCREASE MORE THAN 27 MILLION A YEAR UNDER AGREEMENTS REACHED WITH THREE TELEPHONE COMPANIES THE AGREEMENTS CALL FOR PEOPLES TO RECEIVE COMPENSATION FOR TELECOMMUNICATIONS TRAFFIC GENERATED FROM ITS PUBLIC PAY PHONES IN THE PAST PEOPLES RECEIVED LITTLE OR NO COMPENSATION FROM THESE COMPANIES PEOPLES WHICH REPORTED REVENUE OF 559 MILLION IN 1991 DECLINED TO NAME THE CARRIERS INVOLVED PEOPLES OWNS AND OPERATES ABOUT 24000 CELLULAR AND PUBLIC PAY TELEPHONES NATIONWIDE 9301210121 930121 MARKETING & MEDIA BRIEF CARNIVAL CRUISE LINES INC CRUISE LINE TO BE CREATED FOR THE HISPANIC MARKET CARNIVAL CRUISE LINES INC MIAMI SAID IT IS CREATING A CRUISE LINE FIESTAMARINA CRUISES AIMED SPECIFICALLY AT THE HISPANIC MARKET THE NEW LINE WILL BEGIN SERVICE IN OCTOBER WITH CRUISES FROM SAN JUAN PUERTO RICO AND LA GUAIRA PORT IN CARACAS VENEZUELA ALL ONBOARD COMMUNICATION WILL BE IN SPANISH WHILE THE DINING AND ENTERTAINMENT WILL HAVE A LATIN FLAVOR THE COMPANY WILL INITIALLY FEATURE ONE SHIP THE FIESTAMARINA WHICH CURRENTLY OPERATES AS THE CARNIVALE FROM PORT CANAVERAL FLA TO THE BAHAMAS CARNIVAL WITH ITS AFFILIATED CRUISE LINES HOLLAND AMERICA LINE WINDSTAR CRUISES AND SEABOURN CRUISE LINE OPERATES 18 SHIPS IN THE CARIBBEAN ALASKA AND OTHER WORLDWIDE DESTINATIONS 9301210120 930121 INTERNATIONAL BOLS AND WESSANEN IN THE NETHERLANDS AGREE ON MERGER BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL DUTCH MERGER MANIA APPEARS TO CONTINUE UNABATED AS TWO OF THE NETHERLANDS' LEADING FOOD AND DRINK COMPANIES ANNOUNCED PLANS FOR A FULL SHARE SWAP DISTILLEERDERIJEN ERVEN LUCAS BOLS NV WHICH PRODUCES A WIDE RANGE OF SPIRITS WINES LIQUEURS AND SOFT DRINKS AND WESSANEN NV A CHEESE YOGURT AND CEREALS COMPANY SAID THEY ARE HOLDING TALKS AIMED AT A COMPLETE MERGER BASED ON CURRENT STOCK PRICES THE COMBINED COMPANY WOULD HAVE A MARKET CAPITALIZATION OF ABOUT 32 BILLION GUILDERS 177 BILLION AND ANNUAL REVENUE OF MORE THAN FIVE BILLION GUILDERS SPOKESMEN FOR BOTH COMPANIES WOULDN'T OFFER DETAILS BUT DUTCH ANALYSTS EXPECT A PROPOSED SWAP OF TWO BOLS SHARES FOR EACH WESSANEN SHARE BOLS IS BEST KNOWN FOR ITS BOLS AND BOKMA BRANDS OF GIN DRY SACK SHERRY AS WELL AS PISANG AMBON AND ZWARTE KIP LIQUEURS 89 OF THE COMPANY'S SALES ARE IN EUROPE WESSANEN WHICH DERIVES MORE THAN HALF ITS REVENUE FROM THE US MARKET HAS DEVELOPED STRONG BRAND NAMES SUCH AS LEERDAMMER CHEESE IN EUROPE AND KEMPS FROZEN DESSERTS IN AMERICA BOLS AND WESSANEN HAVE BEEN EXPANDING AGGRESSIVELY IN EUROPE ACQUIRING FOREIGN BRANDS TO ESTABLISH A BROADER CONTINENTWIDE PRESENCE BUT ANALYSTS SAID THE DUTCH COMPANIES' RELATIVELY MODEST SIZE HAS HAMPERED THEIR EFFORTS TO ACQUIRE PREMIUM MULTINATIONAL BRANDS IN EUROPE'S RAPIDLY CONSOLIDATING FOOD AND DRINK INDUSTRY WHICH IS DOMINATED BY GIANTS SUCH AS FRANCE'S BSN SA SWITZERLAND'S NESTLE SA THE ANGLODUTCH UNILEVER NV OR THE USBASED PHILIP MORRIS COS YESTERDAY IN TRADING ON THE AMSTERDAM STOCK EXCHANGE BOLS SURGED 420 GUILDERS TO 47 GUILDERS A SHARE WESSANEN FELL FIVE GUILDERS TO 9850 GUILDERS THE DUTCH BUSINESS WORLD HAS BEEN SWEPT BY A WAVE OF MERGERS DURING THE PAST TWO YEARS A STRING OF BANKING INSURANCE PAPER PRINTING AND FOOD COMPANIES HAVE RUSHED INTO TALKS WITH THE AIM OF ACQUIRING CRITICAL SIZE IN THE EUROPEAN COMMUNITY'S BORDERFREE SINGLE MARKET 9301210119 930121 TECHNOLOGY DEPRENYL IS FOUND TO POSTPONE EFFECTS OF PARKINSON'S DISEASE A WALL STREET JOURNAL NEWS ROUNDUP THE DISABLING SYMPTOMS OF PARKINSON'S DISEASE CAN BE DELAYED ABOUT NINE MONTHS BY THE PRESCRIPTION DRUG DEPRENYL ACCORDING TO MEDICAL RESEARCH CONFIRMING AN EARLIER STUDY THE RESEARCH PUBLISHED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE IS A FOLLOWUP TO A PRELIMINARY TRIAL IN 1989 THAT STUDIED THE DRUG'S EFFECT IN ABOUT 800 PATIENTS PARKINSON'S DISEASE WHICH AFFECTS ABOUT 750000 PEOPLE IN NORTH AMERICA IS CHARACTERIZED BY THE RELENTLESS DEGENERATION OF MUSCLE CONTROL DUE TO THE PROGRESSIVE LOSS OF CERTAIN NERVE CELLS IN THE BRAIN THERE IS NO CURE THE STANDARD TREATMENT IS A DRUG CALLED LDOPA THAT CAN FOR A TIME REDUCE THE SEVERITY OF SOME OF THE DISEASE'S SYMPTOMS SUCH AS SHAKING OVER TIME HOWEVER LDOPA LOSES ITS BENEFICIAL EFFECTS AND CAN PRODUCE SERIOUS SIDE EFFECTS SUCH AS HALLUCINATIONS AND EXACERBATED TREMORS IN THE NEWLY REPORTED STUDY RESEARCHERS SAID THEY FOUND THAT DEPRENYL CAN PUT OFF THE NEED TO USE LDOPA FOR ABOUT NINE MONTHS ON AVERAGE THE STUDY HOWEVER WAS UNABLE TO DETERMINE IF THE DRUG WORKS BY MERELY MUTING SYMPTOMS MUCH LIKE LDOPA OR WHETHER IT ACTUALLY PREVENTS THE DESTRUCTION OF CRUCIAL NERVE CELLS THE DRUG IS MARKETED AS ELDEPRYL BY SOMERSET PHARMACEUTICALS OF TAMPA FLA WHICH IS JOINTLY OWNED BY TWO GENERIC DRUG COMPANIES BOLAR PHARMACEUTICAL CO OF COPIAGUE NY AND MYLAN LABORATORIES INC OF PITTSBURGH DRUG INDUSTRY ANALYSTS SAID ELDEPRYL'S SALES WERE ABOUT 105 MILLION IN 1992 THE FOOD AND DRUG ADMINISTRATION HAS APPROVED THE DRUG FOR USE ONLY IN LATTER STAGES OF THE DISEASE BUT THE LATEST REPORT STRONGLY SUGGESTED THAT ELDEPRYL BE CONSIDERED FOR USE IN INITIAL THERAPY TOO 9301210118 930121 BUSINESS BRIEFS FOURTH FINANCIAL CORP AGREED TO ACQUIRE NICHOLS HILLS BANCORP AND ITS NICHOLS HILLS BANK & TRUST CO UNIT IN EXCHANGE FOR 470000 FOURTH FINANCIAL COMMON SHARES AVNET INC PURCHASED THE COMPONENTS BUSINESSES OF ELECTRONIC 2000 AG TERMS WEREN'T DISCLOSED A SUN MICROSYSTEMS INC UNIT WILL OFFER XYLOGICS INC'S ANNEX THREE COMMUNICATIONS SERVER PRODUCT LINE TO ITS COMPUTER WORKSTATION CUSTOMERS TERMS WEREN'T DISCLOSED WALBRO CORP SIGNED A LETTER OF INTENT TO ACQUIRE FITZSIMONS MANUFACTURING CO A UNIT OF COPPER & BRASS SALES INC TERMS WEREN'T DISCLOSED PETROLITE CORP SIGNED A LETTER OF INTENT TO ACQUIRE THE ASSETS OF WELCHEM INC A UNIT OF AMOCO CORP TERMS WEREN'T DISCLOSED NEW IMAGE INDUSTRIES INC PLANS TO SPIN OFF ITS STYLES ON VIDEO INC SUBSIDIARY FEB 8 TERMS WEREN'T DISCLOSED 9301210117 930121 BUSINESS BRIEF DATA GENERAL IN A SURPRISE TO ANALYSTS REPORTS A PROFIT FOR FISCAL FIRST QUARTER WESTBOROUGH MASS DATA GENERAL CORP REPORTED A SMALL FISCAL FIRSTQUARTER PROFIT SURPRISING MANY ANALYSTS WHO HAD EXPECTED THE COMPUTER MAKER TO SHOW A LOSS THE COMPANY POSTED EARNINGS OF 800000 OR TWO CENTS A SHARE COMPARED WITH 4 MILLION OR 12 CENTS A SHARE A YEAR EARLIER REVENUE FELL 6 TO 2796 MILLION FROM 2948 MILLION ANALYSTS NOTED THAT REVENUE WOULD HAVE BEEN NEARLY FLAT WITHOUT A 12 MILLION NEGATIVE EFFECT OF FOREIGN CURRENCY TRANSLATION IN THE PERIOD IN LATE NEW YORK STOCK EXCHANGE TRADING DATA GENERAL WAS QUOTED AT 11375 UP 50 CENTS IT WAS A SOLID QUARTER IN A VERY TOUGH ENVIRONMENT SAID JAY P STEVENS AN ANALYST AT DEAN WITTER REYNOLDS INC PROFIT MARGINS WERE GOOD AND THEY'VE GOT EXPENSES UNDER CONTROL MR STEVENS HAD EXPECTED A LOSS OF FIVE CENTS A SHARE IN THE QUARTER DESPITE THE BETTERTHANEXPECTED RESULTS DATA GENERAL PRESIDENT RONALD SKATES WAS WARY WE CONTINUE TO BE VERY CAUTIOUS FOR THE SHORT TERM BECAUSE OF THE WEAK WORLD ECONOMY PARTICULARLY IN EUROPE AND JAPAN HE SAID HE SAID HE SEES NO INDICATION THAT PRICING PRESSURES WILL EASE SOON DATA GENERAL SAID ITS AVIION COMPUTER LINE WHICH IS BASED ON OFFTHESHELF MICROPROCESSOR TECHNOLOGY AND STANDARD OPERATING SOFTWARE ECLIPSED THE AGING MV MINICOMPUTER LINE FOR THE THIRD STRAIGHT QUARTER AND IS NOW THE COMPANY'S LARGEST PRODUCT LINE MR STEVENS ESTIMATED AVIION SALES IN THE QUARTER AT 100 MILLION AN INCREASE OF 50 OVER LAST YEAR'S FIRST QUARTER AND ABOUT 5 OR 6 HIGHER THAN IN THE PRECEDING QUARTER THE CONTINUED GROWTH OF THE AVIION LINE IS CRITICAL TO DATA GENERAL'S FUTURE INTRODUCED IN 1989 IT IS CENTERPIECE OF A STRATEGY INTENDED TO MAKE UP FOR DECLINING MINICOMPUTER SALES AND HAS BEEN ACCOMPANIED BY SHARP WORK FORCE CUTS AND THE CLOSING OF SIX OF SEVEN FACTORIES SHIPMENTS OF ANOTHER NEW PRODUCT LINE CLARIION DISK DRIVES BEGAN LATE IN THE QUARTER AND PROVIDED ONLY NOMINAL REVENUE BARRY BOSAK AN ANALYST AT SMITH BARNEY HARRIS UPHAM ESTIMATES THE DATASTORAGE PRODUCT LINE COULD ACHIEVE SALES OF 100 MILLION NEXT YEAR DATA GENERAL SAID IT HAS 202 MILLION OF CASH AND MARKETABLE SECURITIES ON HAND AND LONGTERM DEBT OF 162 MILLION UNCHANGED FROM A YEAR AGO 9301210116 930121 BUSINESS BRIEF AMERICA WEST AIRLINES WINTER SALE ON LEISURE FARES IS EXTENDED UNTIL FEB 17 AMERICA WEST AIRLINES PHOENIX EXTENDED ITS WINTER SALE WHICH CUTS PRICES FOR LEISURE FARES BY AS MUCH AS 30 THE CARRIER STRUGGLING TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS SAID THE PRICE REDUCTIONS APPLY TO NONREFUNDABLE TICKETS PURCHASED BY FEB 17 TRAVEL MUST TAKE PLACE BY MAY 15 AND VARIOUS RESTRICTIONS APPLY INCLUDING A 14DAY ADVANCE PURCHASE AND A SATURDAY NIGHT STAY THE STEEPEST DISCOUNT IS AVAILABLE FOR TRAVEL ON THE NONPEAK TIMES MONDAYS TUESDAYS WEDNESDAYS AND THROUGH NOON THURSDAYS EARLIER THIS MONTH AMERICA WEST ANNOUNCED A SIMILAR 30 FARE CUT FOR TRAVEL THROUGH MARCH 10 FOR TICKETS PURCHASED BY TODAY THE EXTENSION OF THE SALE FOR LEISURE TRAVELERS UNDERSCORES THE SOFTNESS IN THAT MARKET GENERALLY OTHER CARRIERS HAVE MATCHED AMERICA WEST ON ROUTES WHERE COMPETITION IS HEATED 9301210115 930121 ALEXANDER ENERGY FILES SHARES OKLAHOMA CITY ALEXANDER ENERGY CORP SAID IT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 26 MILLION COMMON SHARES THE OIL AND GAS CONCERN SAID 100000 SHARES ARE BEING OFFERED BY A SHAREHOLDER WITH THE REST OFFERED BY THE COMPANY THE COMPANY'S PROCEEDS WILL BE USED PRIMARILY FOR RETIRING BANK DEBT AFTER WHICH ALEXANDER ENERGY WILL ESTABLISH AN 11 MILLION LINE OF CREDIT FOR ACQUISITIONS SAID BOB G ALEXANDER THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE PAYING THE BANK DEBT ALSO HELPS FREE UP 6 MILLION A YEAR IN CASH FLOW THAT THE COMPANY WILL USE AS ITS DRILLING BUDGET HE SAID THE OFFERING WILL BE MANAGED BY HANIFEN IMHOFF INC OF DENVER AND EPPLER GUERIN & TURNER INC OF DALLAS ALEXANDER ENERGY SAID THAT IF THE OFFER IS OVERSUBSCRIBED THE COMPANY AND THE SHAREHOLDER MAY SELL AN ADDITIONAL 390000 SHARES THE FIRST 333333 OF WHICH WOULD BE SOLD BY THE SHAREHOLDER 9301210114 930121 WHO'S NEWS BOSTON TECHNOLOGY INC WAKEFIELD MASS BOSTON TECHNOLOGY INC NAMED JOHN C TAYLOR PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING DAVID S GERGACZ WHO WILL REMAIN WITH THE COMPANY AS AN ADVISER BOSTON TECHNOLOGY A MAKER OF VOICEPROCESSING SYSTEMS FOR TELEPHONE COMPANIES SAID THAT DR TAYLOR 47 YEARS OLD HAS SERVED IN SENIOR MANAGEMENT POSTS AT NORTHERN TELECOM INC AND GENERAL DATACOMM INC A SPOKESWOMAN SAID MR GERGACZ 43 WHO SERVED AS CHIEF EXECUTIVE FOR 18 MONTHS CHOSE TO LEAVE HIS POST AFTER ACCOMPLISHING THE GOALS HE SET OUT TO ACHIEVE ON GOOD TERMS WITH THE COMPANY ON A HIGH POINT SHE SAID HE WILL WORK CLOSELY WITH THE NEW CHIEF EXECUTIVE AFTER TAKING A LITTLE TIME OFF 9301210113 930121 CANADIAN FIRMS' SHIPMENTS UP OTTAWA CANADIAN MANUFACTURERS REGISTERED A 06 RISE IN SHIPMENTS IN NOVEMBER FROM OCTOBER AND A 18 INCREASE IN NEW ORDERS STATISTICS CANADA A GOVERNMENT AGENCY SAID THE RISE IN NOVEMBER SHIPMENTS WAS LED BY THE AUTO AND WOOD INDUSTRIES SHIPMENTS HAVE INCREASED IN THREE OF THE PAST FOUR MONTHS NEW ORDERS ROSE FOR THE SECOND CONSECUTIVE MONTH BUT UNFILLED ORDERS REGISTERED THEIR THIRD DECLINE IN A ROW DROPPING 03 FROM OCTOBER 9301210112 930121 LADD FURNITURE GETS CREDIT LINE HIGH POINT NC LADD FURNITURE INC SAID IT RECEIVED AN UNSECURED 130 MILLION LINE OF CREDIT THAT WILL REDUCE THE COMPANY'S ANNUAL INTEREST COSTS MORE THAN 1 MILLION AND PROVIDE 45 MILLION OF AVAILABLE CREDIT THE FINANCING FOR THE FURNITURE MAKER WAS PROVIDED BY A GROUP OF SEVEN BANKS LED BY CHASE MANHATTAN BANK THE CREDIT FACILITY CONSISTS OF A 45 MILLION SIXYEAR TERM LOAN AND AN 85 MILLION THREEYEAR REVOLVING CREDIT FACILITY WITH TWO ONEYEAR RENEWAL OPTIONS 9301210111 930121 TECHNOLOGY NEW RICOH COPIER TRANSLATES AT PACE OF 2 MINUTES A PAGE MACHINE CAN CONVERT ENGLISH INTO JAPANESE BUT WORDS ARE BASIC COULD BE WRONG BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO RICOH CO ANNOUNCED A NEW DIGITAL PHOTOCOPIER THAT WILL PROVIDE BASIC WORDFORWORD TRANSLATIONS FROM ENGLISH TO JAPANESE THE COMPANY CLAIMS ITS NEW PRODUCT IS THE FIRST COPIER TO DO SUCH TRANSLATION BUT USERS WOULD BE WISE TO NOT DEPEND TOO HEAVILY UPON IT THE COPIER PRICED AT ABOUT 11240 TAKES ABOUT TWO MINUTES TO TRANSLATE A SINGLE LETTERSIZED ENGLISH DOCUMENT INTO JAPANESE ACCORDING TO A RICOH SPOKESMAN IT HAS A VOCABULARY OF ABOUT 37000 ENGLISH WORDS THE MACHINE ALSO PRODUCES REGULAR COPIES SENDS FAXES AND ACTS AS A COMPUTER PRINTER WHAT THE MACHINE DOESN'T DO IS PROVIDE SENSIBLE TRANSLATIONS THAT CAPTURE THE MEANING OF ENGLISH SENTENCES INSTEAD IT PRODUCES A DUPLICATE OF A DOCUMENT ON WHICH IT PRINTS JAPANESE WORD TRANSLATIONS IN SMALL CHARACTERS BELOW THEIR ENGLISH EQUIVALENTS THIS TRANSLATION IS NOT EXACT THE RICOH COPIER MERELY SELECTS THE MOST COMMON MEANING OF EACH WORD WHICH COULD PRODUCE WILD INACCURACIES IN DIFFICULT TRANSLATIONS AS A BACKUP THE RICOH COPIER WILL ALSO PRODUCE OUTPUT THAT LISTS ALL THE DIFFICULT ENGLISH WORDS FROM A DOCUMENT WITH ALL THEIR POSSIBLE JAPANESE TRANSLATIONS RICOH SAYS THE PRODUCT WHICH WILL BE SOLD ONLY IN JAPAN IS AIMED AT TRANSLATION COMPANIES AND JAPANESE OFFICE CLERKS WHO WANT TO AVOID CONSULTING DICTIONARIES AS A RESULT THE MACHINE DOESN'T DO COMPLETE WORDFORWORD TRANSLATIONS IT DISREGARDS BASIC ENGLISH WORDS THAT THE COMPANY EXPECTS JAPANESE USERS TO HAVE LEARNED IN SECONDARY SCHOOL RICOH DOESN'T EXACTLY EXPECT THE NEW PRODUCT TO BLOW OPEN THE MARKET EITHER THE COMPANY ESTIMATES IT WILL SELL ONLY 2400 UNITS A YEAR ONCE IT BEGINS OFFERING THE NEW COPIER ON MARCH 22 RICOH'S ANNOUNCEMENT COMES AS COMPUTERAIDED TRANSLATION IS ATTRACTING NEW ATTENTION IN THE ELECTRONICS INDUSTRY DOCUMENT TRANSLATION ISN'T THE ONLY POTENTIAL NEW MARKET SEVERAL COMPANIES ARE ALSO ACTIVELY PURSUING THE GOAL OF SIMULTANEOUS TRANSLATION OF TELEPHONE CONVERSATIONS IN DIFFERENT LANGUAGES 9301210110 930121 ABREAST OF THE MARKET INDUSTRIALS DECLINE 1404 POINTS US SURGICAL LEAPS BANKS DOWN BY CHRISTOPHER ELLIOTT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET WELCOMED PRESIDENT CLINTON BY SENDING BLUECHIP ISSUES TO THEIR SECOND CONSECUTIVE DOUBLEDIGIT LOSS THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 1404 POINTS OR 043 TO 324195 THE STANDARD & POOR'S 500STOCK INDEX SLIPPED 176 POINTS OR 040 TO 43337 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EASED 077 POINT OR 032 TO 23889 THE GLAMOUR OF THE INAUGURATION IS OVER SAID PETER CARDILLO DIRECTOR OF RESEARCH AT WESTFALIA INVESTMENTS REALITY IS SETTING IN NOW THE MARKET WANTS TO SEE WHAT NEW STEPS THE ADMINISTRATION WILL TAKE TO STIMULATE THE ECONOMY ALTHOUGH THE NATION'S 42ND PRESIDENT SAID NOTHING SUBSTANTIVE ABOUT ECONOMIC POLICY DURING HIS INAUGURAL SPEECH INVESTORS CONTINUED TO FEAR HIS PROGRAMS MIGHT SPAWN HIGHER INFLATION STOCK PRICES STARTED THE SESSION ON MIXED TURF BUT TURNED HIGHER BY MIDMORNING EQUITIES CLIMBED BRIEFLY AS MR CLINTON TOOK THE OATH OF OFFICE AND THEN SURRENDERED THEIR GAINS PRESSURED BY COMPUTERGUIDED SELLING DISAPPOINTING RESULTS FROM SEVERAL LARGE COMPANIES IN THE INDUSTRIAL AVERAGE WIDENED THE LOSSES THE SESSION'S SUPERSTAR STOCK WAS US SURGICAL WHICH SKYROCKETED 6 1/2 TO 75 7/8 AFTER IT REPORTED LATE TUESDAY THAT FOURTHQUARTER EARNINGS ROSE TO 64 CENTS A SHARE FROM YEARAGO NET OF 48 CENTS A SHARE THE PICTURE WASN'T SO PRETTY FOR FINANCIAL INSTITUTIONS WHICH WERE INVESTORS' DARLINGS DURING THE PRIOR SESSION CITING HEADY GAINS IN STOCK PRICES IN THE PAST WEEK MERRILL LYNCH'S BANK GROUP SLASHED ITS RATINGS ON SEVERAL BANKS BANK OF NEW YORK TUMBLED 1 1/4 TO 59 WELLS FARGO LOST 1 3/4 TO 97 1/4 AND COMERICA DROPPED 1 3/4 TO 30 7/8 ONLY CITICORP YESTERDAY'S MOSTACTIVE BIG BOARD ISSUE WITHSTOOD MERRILL'S DOWNGRADE IT CLOSED 1 1/2 HIGHER TO 26 WITH ABOUT 10 MILLION OF ITS SHARES CHANGING HANDS THE PACE OF TRADING SLOWED A BIT SOME 267740000 SHARES WERE TRADED COMPARED WITH TUESDAY'S 283110000 DECLINERS TOPPED ADVANCERS 974 TO 883 RICHARD EAKLE PRESIDENT OF EAKLE ASSOCIATES SAID STOCKS ARE LIKELY TO CONTINUE ON THEIR PRESENT COURSE THE MARKET IS GETTING HEAVIER AS THE DAYS GO BY HE ASSERTED RIGHT NOW WE'RE RUNNING ON A FEW CYLINDERS IN OTHER CORPORATE DEVELOPMENTS GENERAL ELECTRIC FELL 1 1/2 TO 82 5/8 AFTER IT POSTED A FOURTHQUARTER PROFIT OF 157 A SHARE OR 13 BILLION COMPARED WITH NET OF 146 A SHARE OR 12 BILLION A YEAR EARLIER MANY ANALYSTS HAD ANTICIPATED SLIGHTLY HIGHER NET IN THE LATEST QUARTER GE AND INTERNATIONAL BUSINESS MACHINES WHICH LOST 1 1/2 TO 46 7/8 ACCOUNTED FOR ABOUT 6 1/2 POINTS OF THE 1404POINT DROP IN THE INDUSTRIAL AVERAGE WESTINGHOUSE ELECTRIC INCHED 1/8 LOWER TO 14 IT RECORDED A FOURTHQUARTER LOSS OF 344 A SHARE OR 11 BILLION LAST YEAR WESTINGHOUSE POSTED EARNINGS OF 51 CENTS A SHARE OR 171 MILLION RESULTS IN THE LATEST QUARTER INCLUDE LOSSES OF 12 BILLION OR 368 A SHARE FROM DISCONTINUED OPERATIONS TENNECO WAS OFF 2 TO 40 AFTER A REPORT THAT THE HOUSTON CONGLOMERATE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL H WALSH WAS DIAGNOSED WITH A BRAIN TUMOR THE COMPANY SAID MR WALSH'S CONDITION IS TREATABLE WITH RADIATION AND CHEMOTHERAPY JUST TUESDAY TLC BEATRICE INTERNATIONAL HOLDINGS' CHAIRMAN AND CONTROLLING SHAREHOLDER REGINALD LEWIS WHO WAS SUFFERING FROM BRAIN CANCER DIED OF A CEREBRAL HEMORRHAGE IMC FERTILIZER GROUP ADDED 2 7/8 TO 44 7/8 ON NEWS THAT IT FORMED A JOINT VENTURE WITH FREEPORTMCMORAN RESOURCE PARTNERS THAT WILL INCLUDE THEIR RESPECTIVE PHOSPHATE FERTILIZER BUSINESSES INCLUDING PHOSPHATE ROCK AND URANIUM SHARES OF FREEPORT JUMPED 5/8 TO 20 STRATUS COMPUTER FELL 3 7/8 TO 31 5/8 AFTER TWO ANALYSTS PARED THEIR EARNINGS OUTLOOK FOR THE MARLBOROUGH MASS PRODUCER OF MINICOMPUTER SYSTEMS A COWEN & CO ANALYST DOWNGRADED HIS NEARTERM RATING ON STRATUS TO HOLD FROM BUY AND CUT HIS FOURTHQUARTER EARNINGS ESTIMATE TO 75 CENTS A SHARE AND AN SG WARBURG & CO ANALYST TRIMMED HIS FORECAST TO BETWEEN 75 CENTS AND 77 CENTS A SHARE BOTH ANALYSTS PREVIOUSLY ESTIMATED EARNINGS OF 80 CENTS CONNER PERIPHERALS ADDED 3 TO 23 1/4 THE SAN JOSE CALIF DISK DRIVE MANUFACTURER REPORTED FOURTHQUARTER NET INCOME OF 17 CENTS A SHARE OR 84 MILLION COMPARED WITH 23 CENTS A SHARE OR 132 MILLION A YEAR AGO EARNINGS IN THE LATEST QUARTER INCLUDE A CHARGE OF 576 MILLION IN CONNECTION WITH AN ACQUISITION RUSSELL CORP INCREASED 1 1/4 TO 34 3/4 THE ALEXANDER CITY ALA APPAREL MAKER REPORTED A FOURTHQUARTER PROFIT OF 74 CENTS A SHARE OR 303 MILLION COMPARED WITH YEARAGO EARNINGS OF 64 CENTS A SHARE OR 263 MILLION STORAGE TECHNOLOGY INCREASED 1 3/8 TO 20 3/8 EVEN THOUGH THE LOUISVILLE COLO COMPUTER STORAGE SYSTEMS MANUFACTURER POSTED A FOURTHQUARTER LOSS OF 18 CENTS A SHARE OR 76 MILLION LAST YEAR STORAGE TECHNOLOGY REPORTED NET INCOME OF 88 CENTS A SHARE OR 365 MILLION ALTHOUGH GROSS MARGINS WERE HURT BY AN INCREASE IN THE PERCENTAGE OF JUNIOR LIBRARY SALES STORAGE TECHNOLOGY SAID A HIGHER RATE OF INVESTMENT IN RESEARCH AND DEVELOPMENT HAS POSITIONED IT FOR FUTURE GROWTH METROPOLITAN FINANCIAL DROPPED 1 1/2 TO 15 5/8 THE MINNEAPOLIS SAVINGS AND LOAN RECORDED FOURTHQUARTER NET INCOME OF 34 CENTS A SHARE OR 97 MILLION COMPARED WITH 88 CENTS A SHARE OR 234 MILLION ON AN 189 MILLION ONETIME GAIN MARKET WATCHERS WERE LOOKING FOR HIGHER SHARE EARNINGS IN THE LATEST QUARTER CRAY RESEARCH SURGED 1 1/4 TO 27 5/8 THE EAGAN MINN COMPUTING SYSTEMS DEVELOPER RECEIVED AN ORDER FOR A USED EIGHTPROCESSOR YMP D SYSTEM FROM THE LIEBNIZ COMPUTER CENTER OF THE BAVARIAN ACADEMY OF SCIENCES TERMS WEREN'T DISCLOSED ON THE AMERICAN STOCK EXCHANGE PAINEWEBBER'S MULTIPLE CURRENCY WARRANTS FINISHED UNCHANGED AT 5 7/8 THE WARRANTS WHICH TRACK THE VALUE OF THE US DOLLAR IN RELATION TO THE COMBINED CURRENCIES OF THE BRITISH POUND THE MARK AND THE YEN WERE PRICED LATE TUESDAY AT 595 EACH DEMAND FOR THE OFFERING WAS SO STRONG THAT THE UNDERWRITERS INCREASED THE SIZE OF THE ISSUE TO 4650000 WARRANTS FROM AN ORIGINALLY PLANNED TWO MILLION 9301210109 930121 UNION TEXAS PETROLEUM WELL HOUSTON UNION TEXAS PETROLEUM HOLDINGS INC SAID A UNIT DISCOVERED NATURAL GAS IN SOUTHEASTERN PAKISTAN THE EXPLORATION WELL LOCATED IN THE BADIN AREA TESTED 211 MILLION CUBIC FEET OF GAS A DAY ON A 48/64INCH OPENING UNION TEXAS PAKISTAN WITH 30 INTEREST IS OPERATOR OF A JOINT VENTURE GROUP THAT INCLUDES OCCIDENTAL PETROLEUM CORP WITH A 30 INTEREST AND A PAKISTANI GOVERNMENTOWNED COMPANY OIL & GAS DEVELOPMENT CORP WITH 40 9301210108 930121 INTERNATIONAL RUSSIA WATERS DOWN SUPPORT OF POLICY AGAINST IRAQ IN RESPONSE TO HARDLINERS BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIA IS WALKING A TIGHTROPE IN THE MIDDLE EAST OFFICIALS SAY THEY ARE COMMITTED TO UPHOLDING THE WESTERN COALITION AGAINST IRAQI LEADER SADDAM HUSSEIN BUT DOMESTIC CONSIDERATIONS ARE FORCING MOSCOW TO WATER DOWN ITS SUPPORT POTENTIALLY JEOPARDIZING THE ALLIES' UNITED STAND IN RECENT DAYS SEVERAL RUSSIAN OFFICIALS HAVE CRITICIZED THE WEST'S BOMBING RAIDS WHICH HAVE CAUSED CIVILIAN CASUALTIES SERGEI YASTRZHEMBSKY CHIEF SPOKESMAN FOR RUSSIA'S FOREIGN MINISTRY SAID THE RAIDS AMOUNTED TO AN OVERREACTION TO IRAQ'S PROVOCATIONS COMING FROM A MEMBER OF THE UNITED NATIONS SECURITY COUNCIL RUSSIA'S RESERVATIONS HAVE RAISED DOUBTS AS TO WHETHER THE WEST CAN PRESERVE THE USLED COALITION THAT DROVE IRAQI FORCES OUT OF KUWAIT TWO YEARS AGO MR YASTRZHEMBSKY SAID RUSSIA DOESN'T WANT TO WEAKEN THE ALLIES' UNITY THE COALITION MUST BE STRONG AND POWERFUL ENOUGH TO FACE ANY CHALLENGE FROM IRAQ HE SAID IN A TELEPHONE INTERVIEW IT WOULD BE NEGATIVE FOR EVERYONE IF THE COALITION APPEARED TO HAVE BEEN WEAKENED AT THE SAME TIME MR YASTRZHEMBSKY MADE IT CLEAR THAT RUSSIA IS UNEASY BACKING A MILITARY RESPONSE IN WHICH THE US AND NOT THE UN IS IN THE LEAD WE DON'T EXCLUDE THE POSSIBILITY OF USING BOMBS AND MISSILES AGAINST IRAQ'S MILITARY CHALLENGE HE SAID BUT SUCH SERIOUS DECISIONS SHOULD BE UNDERTAKEN ONLY AFTER COLLECTIVE CONSULTATION RUSSIA HE SAID WAS PLEASED WITH THE SECURITY COUNCIL'S CONSULTATIONS ON TUESDAY AND BY UN SECRETARYGENERAL BOUTROS BOUTROSGHALI'S PROPOSAL TO DISPATCH 3650 ARMED PEACEKEEPERS TO THE IRAQKUWAIT BORDER THOUGH MOSCOW DENIES IT RUSSIA'S CAUTION IS LINKED TO DOMESTIC POLITICAL CONCERNS THE RUSSIAN GOVERNMENT IN PARTICULAR ITS FOREIGN MINISTRY IS VULNERABLE TO CRITICS' CHARGES THAT IT HAS TILTED TOO FAR TOWARD THE WEST TO BE SURE THERE IS LITTLE ACTIVE SUPPORT IN MOSCOW FOR IRAQ OR SADDAM HUSSEIN WHEN A GROUP OF 15 EXTREME RUSSIAN NATIONALISTS ANNOUNCED THAT THEY WOULD SET OFF THIS WEEK FOR BAGHDAD TO FIGHT ALONGSIDE IRAQIS THE LOCAL PRESS DISMISSED THEM AS FOOLISH RENEGADES NOR DOES MOSCOW SEEM UNDULY MOTIVATED BY A DESIRE TO PROTECT THE SMALL NUMBER OF RUSSIANS LIVING IN BAGHDAD INSTEAD THE RUSSIAN RESPONSE IS DRIVEN BY POLITICS AND PRIDE PRESIDENT BORIS YELTSIN'S OPPONENTS ARE HAPPY TO USE ANY OPPORTUNITY TO BASH HIM AT LAST MONTH'S CONGRESS OF PEOPLE'S DEPUTIES SESSION CONSERVATIVES SUCCEEDED IN WEAKENING MR YELTSIN'S ECONOMICREFORM PLANS AND FORCED HIM TO SACK HIS ACTING PRIME MINISTER YEGOR GAIDAR NOW THE POWER STRUGGLE IS SHIFTING TO THE INTERNATIONAL ARENA IN THE SUPREME SOVIET RUSSIA'S PARLIAMENT HARDLINE NATIONALISTS ARE QUESTIONING RUSSIA'S SUPPORT FOR US AGGRESSION THOUGH RUSSIA'S IRAQ POLICY ISN'T A FRONTBURNER ISSUE HERE MR YELTSIN LEARNED LAST MONTH THAT HE CAN'T IGNORE HIS PARLIAMENTARY CRITICS MOREOVER HARDLINERS IN THE SUPREME SOVIET ARE VYING FOR MR YELTSIN'S EAR AT A TIME WHEN RUSSIA'S POSTSOVIET FOREIGN POLICY IS STILL BEING FORMULATED RUSSIAN NATIONALISTS ALSO ARE MOTIVATED BY A DESIRE TO REASSERT INFLUENCE IN THE MIDDLE EAST A REGION IN WHICH THE SOVIETS ONCE COMPETED HEADTOHEAD AGAINST THEIR US RIVALS MANY RUSSIAN NATIONALISTS ARE ANGERED THAT THE YELTSIN ADMINISTRATION APPEARS TO LINE UP BEHIND THE WEST IN NEARLY EVERY MAJOR INTERNATIONAL CONFLICT INCLUDING SANCTIONS AGAINST SERBIA A FEW RUSSIANS EVEN SAY THEY ARE ALREADY PUT OFF BY PRESIDENT CLINTON MR YELTSIN MADE SEVERAL PREINAUGURATION OVERTURES TO MR CLINTON TO FIX A DATE QUICKLY FOR A USRUSSIA SUMMIT MR CLINTON SO FAR HAS DECLINED TO SCHEDULE A SUMMIT IF CLINTON IS TOO BUSY WITH DOMESTIC AFFAIRS THAT MEANS RUSSIA CAN'T TRUST AMERICA 100 AND THAT RUSSIA MUST TAKE CARE OF ITSELF SAYS A RUSSIAN FOREIGNPOLICY EXPERT WHO ASKED NOT TO BE IDENTIFIED THAT INCLUDES KEEPING RELATIONS WITH OUR TRADITIONAL PARTNERS IN THE MIDDLE EAST 9301210107 930121 BUSINESS BRIEF REPUBLIC NEW YORK CORP BANK'S 4THQUARTER PROFIT ROSE 15 TO 668 MILLION REPUBLIC NEW YORK CORP SAID FOURTHQUARTER PROFIT ROSE 15 HELPED BY LOW INTEREST RATES AND FEEBASED BUSINESSES NET INCOME WAS LIFTED TO 668 MILLION OR 114 A SHARE FROM 582 MILLION OR 1 A SHARE A YEAR EARLIER REPUBLIC WITH 37 BILLION IN ASSETS SAID NONPERFORMING ASSETS WERE BASICALLY FLAT UNLIKE MANY BANKS WHICH HAVE REPORTED DECLINING PROBLEM ASSETS THE COMPANY'S PROVISION FOR FUTURE LOAN LOSSES WAS 35 MILLION UNCHANGED FROM THE THIRD QUARTER AND UP FROM 14 MILLION A YEAR EARLIER FOR THE YEAR NET INCOME GREW 14 TO A RECORD 2589 MILLION OR 442 A SHARE FROM 2274 MILLION OR 395 A SHARE IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY REPUBLIC SHARES WERE QUOTED AT 47375 DOWN 125 CENTS THE COMPANY SAID IT WAS RAISING ITS QUARTERLY COMMON DIVIDEND TO 27 CENTS FROM 25 CENTS 9301210105 930121 FAILED BANK'S BOARD OFFICERS AGREE TO SETTLE FDIC SUIT AGAINST UNITS OF FIRST REPUBLICBANK MAY DRAW 23 MILLION BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FORMER DIRECTORS AND OFFICERS OF FIRST REPUBLICBANK CORP'S FAILED DALLAS AND HOUSTON UNITS TENTATIVELY AGREED TO A 23 MILLION SETTLEMENT OF A LAWSUIT FILED BY THE FEDERAL DEPOSIT INSURANCE CORP ACCORDING TO ATTORNEYS INVOLVED IN THE CASE WE'RE SWAPPING PAPERS AS WE SPEAK SAID H DEWAYNE HALE AN ATTORNEY FOR SEVERAL DEFENDANTS MR HALE ALONG WITH OTHER ATTORNEYS DECLINED TO DISCUSS DETAILS OF THE SETTLEMENT WHICH HADN'T BEEN FILED WITH THE FEDERAL COURT HERE AS OF LATE YESTERDAY THE FDIC DECLINED TO COMMENT THE SETTLEMENT REPORTED YESTERDAY IN THE DALLAS MORNING NEWS IS APPARENTLY THE LARGEST YET MADE BY US BANK OFFICERS AND DIRECTORS INVOLVING CHARGES STEMMING FROM A BANK FAILURE BUT THEN THE COLLAPSE OF FIRST REPUBLICBANK FROM LOAN LOSSES FOUR YEARS AGO REMAINS THE COSTLIEST BANK FAILURE IN US HISTORY WITH AN ESTIMATED PRICE TAG OF 36 BILLION THE FDIC LAWSUIT FILED 18 MONTHS AGO SOUGHT MORE THAN 200 MILLION IN DAMAGES FROM 67 DEFENDANTS INCLUDING A VIRTUAL WHO'S WHO OF TEXAS BUSINESS EXECUTIVES WHOM IT ACCUSED OF RECKLESSLY FAILING TO SUPERVISE AND REIN IN IMPRUDENT LENDING PRIMARILY IN THE OIL INDUSTRY AND COMMERCIAL REAL ESTATE IT ALSO ACCUSED DIRECTORS OF THE DALLAS BANK OF FAILING TO STOP SENIOR EXECUTIVES FROM STRONGARMING THE BANK'S LOAN OFFICERS AND APPRAISERS TO MAKE IMPROPER LOANS AND INACCURATE APPRAISALS OF COLLATERAL AMONG THE DEFENDANTS HR BUM BRIGHT FORMER OWNER OF THE DALLAS COWBOYS AND OF THE FAILED BRIGHT BANC SAVINGS ASSOCIATION DALLAS RAY L HUNT CHAIRMAN OF HUNT OIL CO DALLAS J MCDONALD WILLIAMS MANAGING PARTNER OF TRAMMELL CROW CO DALLAS JERRY R JUNKINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TEXAS INSTRUMENTS INC DALLAS GEORGE W STRAKE FORMER CHAIRMAN OF THE TEXAS REPUBLICAN PARTY AND MANY OTHER PROMINENT BUSINESS LEADERS THE CURRENT SETTLEMENT FOLLOWS THE COLLAPSE LATE LAST YEAR OF AN AGREEMENT THAT WOULD HAVE CALLED FOR 32 MILLION IN PAYMENTS HALF FROM THE DEFENDANTS' OWN POCKETS 15 MILLION FROM NATIONAL UNION FIRE INSURANCE CO PITTSBURGH A UNIT OF AMERICAN INTERNATIONAL GROUP INC AND 1 MILLION FROM A SECONDARY INSURER BUT LAST MONTH NATIONAL UNION WHICH HAD CONTESTED ITS LIABILITY WON DISMISSAL OF A SUIT BROUGHT BY THE OFFICERS AND DIRECTORS WHEN A FEDERAL DISTRICT COURT JUDGE AGREED THAT ITS POLICY DIDN'T COVER THE FDIC CLAIMS MICHAEL MCKOOL AN ATTORNEY REPRESENTING SEVERAL DEFENDANTS SAID HIS GROUP WILL PURSUE ITS CLAIM AGAINST NATIONAL UNION MEANWHILE OTHER ATTORNEYS SPEAKING ON CONDITION OF NOT BEING IDENTIFIED SAID THAT A FLURRY OF NEGOTIATIONS IN RECENT WEEKS LED TO THE 23 MILLION FIGURE OF WHICH 22 MILLION WILL COME DIRECTLY FROM THE DEFENDANTS DIVIDED ACCORDING TO THEIR VARYING RESPONSIBILITIES AT THE BANK AND THEIR ABILITY TO PAY THE REMAINING 1 MILLION WILL BE PAID BY AN INSURER BANKERS INSURANCE CO BERMUDA THE DEFENDANTS HAVE ARGUED THAT THEY WERE BEING CONDEMNED IN HINDSIGHT FOR NOT PREDICTING THE COLLAPSE OF THE TEXAS ECONOMY IN THE LATE 1980S BUT ALL BUT ONE OF THOSE REACHED DECLINED TO COMMENT OR REFERRED QUESTIONS TO SUPPORTERS SUCH AS FORMER FDIC GENERAL COUNSEL JOHN DOUGLAS NOW DEFENDING THE DIRECTORS OF SEVERAL OTHER FAILED BANKS NINE OUT OF THE TOP 10 BANKS IN TEXAS FAILED DURING THE DOWNTURN MR DOUGLAS SAID DOES THAT MEAN THE MANAGEMENT OF ALL THOSE BANKS WAS INCOMPETENT MR BRIGHT THE ONLY DEFENDANT REACHED WHO DIDN'T IMMEDIATELY DECLINE TO COMMENT IS ALSO THE TARGET OF A RESOLUTION TRUST CORP LAWSUIT IN CONNECTION WITH HIS MANAGEMENT OF THE FAILED BRIGHT BANC SAVINGS HE SAID HE AVOIDS TALKING TO HIS ATTORNEY ABOUT THE GOVERNMENT SUITS BECAUSE HE FINDS THEM SO AGGRAVATING IT'S JUST RANSOM HE SAID FIRST REPUBLIC BANCORP INC SAN FRANCISCO ISN'T RELATED TO FIRST REPUBLICBANK CORP DALLAS A BANK HOLDING COMPANY THAT WAS THE SUBJECT OF AN ARTICLE YESTERDAY CONCERNING THE TENTATIVE SETTLEMENT OF A LAWSUIT FILED BY THE FEDERAL DEPOSIT INSURANCE CORP 9301210104 930121 INTERNATIONAL MAZDA CUTS EARNINGS FORECAST TOKYO MAZDA MOTOR CORP REVISED DOWNWARD ITS EARNINGS PROJECTION FOR THE CURRENT FISCAL YEAR MAZDA NOW PREDICTS THAT PRETAX PROFIT FOR THE YEAR ENDING MARCH 31 WILL FALL 69 FROM A YEAR EARLIER AT THAT RATE IT WOULD COME TO SIX BILLION YEN 478 MILLION DOWN FROM 1967 BILLION YEN LAST YEAR PREVIOUSLY THE AUTO MAKER FORECAST A DROP OF ONLY 14 IN PRETAX PROFIT FOR THE CURRENT YEAR THE REVISION PRIMARILY REFLECTS WEAKNESS IN DOMESTIC SALES A SPOKESMAN SAID 9301210102 930121 INTERNATIONAL AIR FRANCE'S CONSOLIDATED LOSS PARIS FRENCH STATE AIRLINE AIR FRANCE SAID IT WILL REPORT A CONSOLIDATED LOSS OF 32 BILLION FRANCS 5887 MILLION FOR 1992 SLIGHTLY WIDER THAN THE COMPANY HAD PREDICTED FOLLOWING A BOARD MEETING THE COMPANY SAID 1993 WILL END IN THE RED AS WELL ALTHOUGH THE LOSS IS EXPECTED TO BE HALF LAST YEAR'S LEVEL OFFICIAL 1992 RESULTS ARE EXPECTED TO BE RELEASED IN APRIL IN SEPTEMBER 1991 AIR FRANCE LAUNCHED AN EXTENSIVE RESTRUCTURING PLAN CALLED CAP 93 DESIGNED TO RETURN THE AIRLINE TO BREAKEVEN OR BETTER BY 1993 AND IN MIDSUMMER INTERVIEWS LAST YEAR AIR FRANCE CHAIRMAN BERNARD ATTALI PREDICTED THAT PROFITABILITY WAS ONLY A YEAR AWAY BUT BY NOVEMBER THE AVIATION INDUSTRY'S CONTINUING RECESSION AND A TRANSATLANTIC FARE WAR WITH US AIRLINES HAD COMBINED TO THWART THAT GOAL 9301210101 930121 ROYAL TRUSTCO IS SEEKING A PARTNER TO INVEST MORE THAN 1563 MILLION BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROYAL TRUSTCO LTD A KEY OPERATING COMPANY IN THE CORPORATE EMPIRE CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN IS SEEKING A PARTNER TO INVEST SEVERAL HUNDRED MILLION DOLLARS IN THE BELEAGUERED FINANCIAL SERVICES CONCERN THE NEW INVESTOR PROBABLY WOULD REPLACE THE BRONFMAN GROUP AS ROYAL TRUSTCO'S LARGEST SHAREHOLDER THE COMPANY SAID LAURENT JOLY PRESIDENT OF ROYAL TRUST INTERNATIONAL A UNIT OF ROYAL TRUSTCO SAID THE COMPANY IS SEEKING A VERY SUBSTANTIAL INVESTMENT OF MORE THAN 200 MILLION CANADIAN DOLLARS US1563 MILLION TRILON FINANCIAL CORP THE BRONFMAN GROUP HOLDING COMPANY THAT NOW CONTROLS 48 OF ROYAL TRUSTCO HAS SAID IT WILL INVEST AS MUCH AS C100 MILLION OF THE NEW CAPITAL REQUIRED BY THE COMPANY BUT ANALYSTS VIEW THE ANNOUNCEMENT BY ROYAL TRUSTCO OF ITS QUEST FOR A MAJOR NEW INVESTOR AS AN INDICATION THAT THE AMOUNT REQUIRED WILL BE SUBSTANTIALLY IN EXCESS OF ITS ANNOUNCED GOAL OF MORE THAN C200 MILLION ALAIN TUCHMAIER AN ANALYST WITH MCLEAN MCCARTHY LTD IN TORONTO SAID A NEW INVESTOR MAY HAVE TO PUT IN AS MUCH AS C500 MILLION GIVEN ROYAL TRUSTCO'S STATEMENT THAT IT EXPECTS TO TAKE ADDITIONAL LOAN LOSS PROVISIONS AGAINST ITS EARNINGS FOR THE FOURTH QUARTER OF 1992 AS WELL AS CHARGES RELATED TO THE ONGOING RESTRUCTURING PROCESS IN THE FIRST NINE MONTHS OF 1992 ROYAL TRUSTCO REPORTED A NET LOSS OF C227 MILLION OR C176 A SHARE ITS LOANLOSS PROVISIONS IN THE PERIOD ROSE TO C281 MILLION FROM C61 MILLION A YEAR EARLIER WHILE THE COMPANY ALSO REPORTED A C70 MILLION CHARGE RELATED TO THE PROPOSED SALE OF ITS US UNIT SEATTLEBASED PACIFIC FIRST BANK WHILE MR TUCHMAIER SAYS HE EXPECTS MOST OF THE CANADIAN BANKS AND TRUST COMPANIES TO TAKE A LOOK AT ROYAL TRUSTCO HE ADDS THAT THE LIST OF SUITORS IS LIKELY TO BE QUITE SMALL GIVEN THE SIZE OF THE INVESTMENT REQUIRED AND THE COMPANY'S OUTLOOK THERE'S LIKELY TO BE SOME MORE DETERIORATION OF THEIR COMMERCIAL LENDING PORTFOLIO OVER THE NEXT 12 TO 18 MONTHS HE SAID THEIR FIDUCIARY ASSETS ARE ATTRACTIVE BUT THEY HAVE SIGNIFICANTLY UNDERINVESTED IN THE RETAIL AND BRANCH OPERATIONS AT LEAST ONE CANADIAN BANK HAS SAID IT IS IN TALKS WITH ROYAL TRUSTCO ALLEN TAYLOR CHAIRMAN OF THE ROYAL BANK OF CANADA SAID THAT THE BANK IS AT THE VERY EARLIEST OF STAGES IN ITS DISCUSSIONS AND NOTED THAT IT IS INTERESTED IN MOVING AHEAD IN THE TRUST FIELD MR ALLEN SAID THE BANK WAS APPROACHED BY ROYAL TRUSTCO LAST WEEK A FREQUENTLY MENTIONED CANDIDATE TO ACQUIRE OR INVEST IN ROYAL TRUSTCO'S CANADIAN OPERATIONS IS BCE INC OF MONTREAL IN NOVEMBER LYNTON WILSON PRESIDENT OF THE TELECOMMUNICATIONS AND FINANCIAL SERVICES CONCERN SAID BCE MIGHT BE INTERESTED IN ROYAL TRUSTCO BCE'S MONTREAL TRUSTCO INC UNIT ATTEMPTED TO BUY SOME OF THE ASSETS OF CENTRAL GUARANTY TRUST CO SOLD LAST YEAR TO TORONTODOMINION BANK AND ANALYSTS SAY IT IS SEEKING A WAY TO EXPAND ITS BRANCH NETWORK BCE OFFICIALS COULDN'T BE REACHED FOR COMMENT BCE INC OF MONTREAL A TELECOMMUNICATIONS AND FINANCIAL SERVICES CONCERN THAT HAS SAID IT WOULD BE INTERESTED IN ADDING TO ITS OWN TRUST COMPANY OPERATIONS SAID IT ISN'T INVOLVED IN ANY DISCUSSIONS WITH ROYAL TRUSTCO AT THIS TIME THE APPARENT AGREEMENT OF THE BRONFMAN GROUP TO THE DILUTION OF ITS OWN 48 HOLDING IN ROYAL TRUSTCO SURPRISED SOME OBSERVERS THE MARKET'S VALUATION OF THIS FRANCHISE HAS OBVIOUSLY DECLINED SAID FRANK LOCHAN CHIEF FINANCIAL OFFICER OF TRILON FINANCIAL CORP THE GROUP'S FINANCIAL SERVICES HOLDING COMPANY WE HAVE A GREAT INTEREST IN SEEING THAT VALUE RESTORED WE'RE LOOKING AT THE CONTEXT ROYAL TRUSTCO'S MR JOLY SAID HE EXPECTS TO BE ABLE TO PROVIDE DETAILS OF THE COMPANY'S PROGRESS IN ITS QUEST FOR NEW INVESTORS NEXT MONTH IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY ROYAL TRUSTCO SHARES ROSE 7 CANADIAN CENTS TO CLOSE AT C305 A SHARE THE SHARES WHICH TRADED AT MORE THAN C7 IN LATE 1991 RECENTLY SET A NEW 52WEEK LOW OF C240 AT LAST REPORT ROYAL TRUSTCO HAD 1534 MILLION SHARES OUTSTANDING 9301210100 930121 LETTERS TO THE EDITOR RUBBER MAKERS NEED TIME TO BOUNCE BACK THE GREAT FEDERAL PANTY RAID BY JAMES BOVARD EDITORIAL PAGE DEC 18 IS AN ERRONEOUS ANALYSIS OF OUR SECTION 201 EXTRUDED RUBBER THREAD DETERMINATION HE MISSTATES THE RECOMMENDATION WE MADE TO THE PRESIDENT AS OUR DEC 2 STATEMENT MADE CLEAR ADDITIONAL TARIFFS WOULD BE IMPOSED ONLY ON IMPORTS THAT EXCEED 50 OF US ANNUAL CONSUMPTION 17 MILLION POUNDS IN 1993 NOT ON ALL IMPORTS AS MR BOVARD REPORTED GIVEN CURRENT TARIFFS IMPORTS ARE PROJECTED TO BE WELL BELOW THIS LEVEL THEREFORE MR BOVARD IS WRONG IN STATING THAT US INDUSTRIES THAT USE RUBBER THREAD SUCH AS PANTYHOSE AND UNDERWEAR PRODUCERS WOULD BE DAMAGED BY THIS TRADE ACTION IT IS LUDICROUS FOR HIM TO PROJECT MORE THAN 3000 JOBS LOST FROM THIS ACTION THE REMEDY WE RECOMMEND ONLY SAFEGUARDS THE US INDUSTRY FROM ANOTHER MASSIVE AND UNEXPECTED SURGE IN IMPORTS WHILE IT IS ADJUSTING TO IMPORT COMPETITION THROUGH COSTSAVING INVESTMENT THIS ACTION IS IN NO WAY A VAIN ATTEMPT TO COMPENSATE TWO SMALL COMPANIES FOR THE FACT THAT RUBBER TREES DO NOT GROW IN AMERICA BEING CLOSE TO RUBBER PLANTATIONS YIELDS NO OVERALL COST ADVANTAGE IN THE PRODUCTION OF RUBBER THREAD FOR SALE IN THE US MARKET ONE POUND OF LATEX IS MANUFACTURED WITH OTHER CHEMICALS AND ADDITIVES INTO MORE THAN ONE POUND OF EXTRUDED RUBBER THREAD SO IT ACTUALLY CAN BE MORE COSTEFFECTIVE TO TRANSPORT THE RAW LATEX RATHER THAN THE FINISHED RUBBER THREAD MR BOVARD'S MERE FACTS OF GEOGRAPHY DO NOT MAKE SOUND POLICY ANALYSIS IN OUR JUDGMENT THE DOMESTIC PRODUCERS HAVE THE CAPABILITY TO ADJUST TO IMPORT COMPETITION IF THEY ARE GIVEN A REASONABLE OPPORTUNITY TO DO SO IF THE US PRODUCERS FAIL TO IMPLEMENT THE ADJUSTMENT PLANS THEY HAVE SUBMITTED TO US THE IMPORT RELIEF WILL BE TERMINATED IN SHORT IF THE PRESIDENT ADOPTS OUR DETERMINATION AND REMEDY RECOMMENDATION WE INTEND TO HOLD THE DOMESTIC INDUSTRY'S FEET TO THE FIRE TO ENSURE THEY MAKE GOOD USE OF THE TEMPORARY RELIEF MR BOVARD BEMOANED THE PLIGHT OF MALAYSIAN PRODUCERS OF RUBBER THREAD NOW THAT THEY HAVE BEEN CALLED TO TASK BY THE US BRAZILIAN AND OTHER GOVERNMENTS FOR THEIR UNFAIR TRADE PRACTICES THESE PRODUCERS WERE FOUND TO HAVE USED ILLEGAL DUMPING AND SUBSIDIZED TRADE TACTICS TO BUY MARKET SHARE IN THE US AND ELSEWHERE IN FACT THEY ADMITTED IN PUBLIC THAT THEY WERE SELLING BELOW COST SO BOTH ANTIDUMPING AND COUNTERVAILING DUTIES WERE IMPOSED ON THEIR GOODS UNTIL THE ILLEGAL ACTIVITIES STOP THE HEAVIES IN THIS CASE ARE NOT THE TWO US PRODUCERS WHO ARE STILL IN THE BUSINESS AND WERE DRIVEN BY REPEATED ANALYSIS OF THE FACTS TO CONCLUDE THAT SUCH TACTICS WERE RESPONSIBLE FOR THE DAMAGE THEY WERE EXPERIENCING RATHER THE HEAVIES ARE THE FOREIGNERS WHO ARE BEING SO BRAZENLY CHAMPIONED BY MR BOVARD NATURALLY BUSINESSES THAT PAY ARTIFICIALLY CHEAP PRICES FOR MATERIALS WOULD LIKE TO HAVE THAT CONTINUE AS LONG AS POSSIBLE AND NOBODY IS HAPPY ABOUT PRICE INCREASES SO THERE ARE BOUND TO BE NOISES FROM CUSTOMERS WHEN THE PARTY ENDS BUT END IT MUST WE AS ONE OF THE TWO US PRODUCERS HAVE NO PROBLEM COMPETING WITH FOREIGN GOODS OUR TECHNOLOGY IS BETTER OUR DELIVERY IS BETTER AND OUR PRICES ARE COMPETITIVE WE NEED TIME TO RECOVER FROM THE INJURY DONE TO US AND TO IMPLEMENT IMPROVEMENTS THAT HAD TO BE DELAYED AS A RESULT OF THE PROTRACTED ATTACK MOUNTED DURING THE MALAYSIAN RAID ON THE US MARKET 9301210099 930121 CANADA AUCTIONS BOND ISSUE THE AVERAGE BID WAS 8498 FOR A PRICE EQUIVALENT OF 94591 PROCEEDS WILL BE USED TOWARD THE REDEMPTION OF C185 BILLION OF GOVERNMENT BONDS MATURING FEB 1 9301210098 930121 TELECOMMUNICATIONS NYNEX PHILIPS JOIN TO DEVELOP SCREEN PHONES' BY MARY LU CARNEVALE AND JOHN J KELLER STAFF REPORTERS OF THE WALL STREET JOURNAL NYNEX CORP AND PHILIPS ELECTRONICS NV EUROPE'S LARGEST ELECTRONICS COMPANY HAVE JOINED FORCES IN THE LOOMING FIGHT TO DOMINATE THE NEXT GENERATION OF HOME TELEPHONES WHICH HAVE SMALL SCREENS THAT CAN DELIVER A WIDE RANGE OF FINANCIAL AND INFORMATION SERVICES ARMED WITH NEW STANDARDS PUBLISHED LAST MONTH BY BELL COMMUNICATIONS RESEARCH CORP THE RESEARCH ARM OF THE SEVEN BABY BELLS THE TWO COMPANIES SAID THEY WILL JOINTLY DEVELOP AND TEST AN INFORMATION SYSTEM TO DELIVER VOICE AND TEXT SERVICES OVER NEW HOME PHONES THE GOAL IS TO PROVIDE A WAY FOR PHONE CUSTOMERS TO OBTAIN SERVICES EASILY USING MODERATELY PRICED SCREENBASED TELEPHONES THAT WOULD COST UNDER 200 BY USING THE BELLCORE STANDARD THE NYNEX AND PHILIPS SYSTEM WOULD MAKE IT SIMPLER TO LINK CALLERS WITH INFORMATION SERVICES AND TO GIVE CONSUMERS THE CHOICE OF MANY BRANDS OF SCREEN PHONES THE NEW VENTURE POSES THE MOST SERIOUS THREAT YET TO AMERICAN TELEPHONE & TELEGRAPH CO'S PLODDING EFFORTS TO DELIVER SCREENBASED PHONE SERVICES UNLIKE THE NYNEXPHILIPS VENTURE AT&T HAS ESCHEWED WORKING WITH BELLCORE UNTIL RECENTLY AND INSTEAD HAS PURSUED ITS OWN PROPRIETARY DESIGN ANALYSTS SAY THIS HAS HELPED DELAY BY A YEAR AT&T'S FIRST FIELD TRIAL WITH HUNTINGTON BANCSHARES BASED IN COLUMBUS OHIO ANALYSTS ALSO CITE INTERNAL CONFLICTS AMONG AT&T'S VARIOUS UNITS OVER RESPONSIBILITY FOR MAKING THE PHONE EQUIPMENT ITSELF AT&T NOW SAYS IT WILL INCORPORATE BELLCORE'S STANDARDS INTO ITS PHONE ALSO LINING UP TO SELL SCREEN PHONES ARE CANADA'S NORTHERN TELECOM LTD JAPAN'S MATSUSHITA ELECTRIC INDUSTRIAL CO AND ONLINE RESOURCES & COMMUNICATIONS CORP MCLEAN VA THE PHONE SKIRMISH IS PART OF A LARGER TECHNOLOGY BATTLE IN WHICH DIFFERENT GROUPS ARE COMPETING TO DEVELOP THE NEXT BIG CONSUMER PRODUCT AS PHONE COMPANIES TRY TO MAKE THEIR PHONES MORE LIKE COMPUTERS THE COMPUTER COMPANIES ARE TRYING TO BUILD INTO COMPUTERS THE COMMUNICATIONS LINKS THAT ENABLE THEM TO ACT MORE LIKE PHONES AT THE SAME TIME INFORMATION SERVICES COMPANIES AND ENTERTAINMENT COMPANIES ARE FORMING ALLIANCES WITH PHONE AND COMPUTER COMPANIES FOR PHONE CUSTOMERS THE SUCCESS OR FAILURE OF THE SCREENPHONE VENTURES WILL DETERMINE HOW QUICKLY PHONE SERVICES MOVE BEYOND TRADITIONAL CALLS TO A COMBINATION OF VOICE AND TEXT THAT WOULD LET CONSUMERS ORDER TICKETS TRANSFER FUNDS IN BANK ACCOUNTS SEND ELECTRONIC MAIL AND EVEN PERUSE RESTAURANT MENUS SUCH USAGE COULD GENERATE TREMENDOUS NEW TRAFFIC FOR THE PHONE COMPANIES AND SPUR THE CREATION OF NEW COMPANIES TO PROVIDE THE INFORMATION AND OTHER SERVICES IN THE NEXT YEAR NYNEX BASED IN WHITE PLAINS NY WILL DEVELOP LINKS AMONG ITS PHONE NETWORK THE NEW PHONES AND INFORMATION PROVIDERS THE SCREEN PHONE IS THE NEXTGENERATION PHONE FOR THE HOME SAID JIM SCHULTZ DIRECTOR OF TELECOMMUNICATIONSBUSINESS DEVELOPMENT FOR NYNEX MANY CUSTOMERS MR SCHULTZ NOTED ALREADY HAVE TELEPHONE SCREENS IN THEIR HOMES FOR RECEIVING CALLER ID MANY MORE REGULARLY DIAL UP NEWS WEATHER SPORTS BANKING AND OTHER INFORMATION SERVICES THERE'S A GROWING NEED AMONG CONSUMERS FOR MORE CONTROL OVER THEIR CALLS HE SAID THE CHALLENGE FOR THE PHONE COMPANIES MR SCHULTZ SAID WILL BE TO GET PEOPLE TO RECOGNIZE THE TELEPHONE AS SOMETHING MORE THAN A TELEPHONE EVENTUALLY SCREEN PHONES COULD BE USED TO SEND MESSAGES TO FACSIMILE MACHINES OR TO SEND AND RECEIVE ELECTRONIC MAIL SAID LARRY MOORE NEWLY NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PHILIPS HOME SERVICES INTERNATIONAL WHO JUMPED FROM LOTUS DEVELOPMENT CORP WHICH HAD CONSIDERED MAKING AN INVESTMENT IN THE JOINT VENTURE THE PHILIPS PHONE WHICH NOW COSTS ABOUT 600 HAS A PULLOUT KEYBOARD MUCH LIKE A SMALL PERSONAL COMPUTER WE DON'T SEE THE DEVICE AS A COMPETITOR TO A PC BUT RATHER A DEVICE A CONSUMER WOULD HAVE IN ADDITION TO A PC MR MOORE SAID AN ADDITIONAL FEATURE OF THE PHILIPS PHONE IS A SMART CARD THAT IS SIMILAR TO AN ORDINARY CREDIT CARD BUT CONTAINS A TINY COMPUTER CHIP THAT CAN STORE INFORMATION SUCH AS IDENTIFICATION OR PHONE AND ACCOUNT NUMBERS AN EARLY NICHE FOR THE PHONE IS THE MARKET FOR TELECOMMUNICATIONS DEVICES FOR THE DEAF MR MOORE SAID THAT PHILIPS HASN'T SHIPPED MANY OF THE PHONES YET BUT THAT HOTELS AND OFFICES ARE CONSIDERING INSTALLING THE DEVICES TO COMPLY WITH A NEW LAW REQUIRING PUBLIC FACILITIES TO BE EQUIPPED WITH TEXT TELEPHONES MR MOORE AND OTHER SCREENPHONE ADVOCATES EXPECT THE PRICE TO PLUNGE AS DEMAND BUILDS IN THE NEXT TWO TO THREE YEARS WHETHER ORDERS WILL POUR IN HE SAID DEPENDS ON HOW MUCH VALUE CONSUMERS SEE IN THE NEW DEVICES THE CHALLENGE HERE IS TO EXPOSE THE PHONE'S CAPABILITIES SLOWLY AND MANAGEABLY SO THAT THE CONSUMER SEES UTTER SIMPLICITY PHILIPS AND NYNEX BELIEVE THAT THE MARKET FOR SCREENBASED PHONES COULD TAKE OFF NEXT YEAR WHEN PHONES AND SERVICES BECOME MORE WIDELY AVAILABLE PHILIPS WILL PUT A BIG MARKETING PUSH BEHIND THIS WITH ADS SIMILAR TO THE RECENT INTRODUCTION OF ITS MULTIMEDIA SYSTEM SAID GENE DEROSE AN ANALYST AT NEW YORKBASED JUPITER COMMUNICATIONS THE SMARTPHONE FROM AT&T IS VERY MUCH IN DANGER OF BEING LAPPED AT&T ACKNOWLEDGES THAT THERE'S BEEN MORE THAN A YEAR'S DELAY ON ITS SMARTPHONE BUT SAYS THE WAIT WILL BE WORTH IT TO CUSTOMERS LOOKING FOR ADVANCED SERVICES THE COMPANY HOPES TO OFFER A PHONE FOR LESS THAN 500 THAT WOULD INCLUDE THE ABILITY TO USE WIRELESS RADIO NETWORKS SUCH AS CELLULAR PHONE SYSTEMS WHEREAS PHILIPS'S PHONE IS ESSENTIALLY A KIND OF PC WITH A KEYBOARD AT&T'S PHONE WOULD FLASH ICONS ON THE SCREEN THAT CALLERS WOULD PRESS FOR SERVICES FUTURE MODELS OF THE SMARTPHONE COULD HAVE BUILTIN ANSWERING MACHINES AND EVEN A SMALL PRINTER IT'S STILL PRETTY MUCH ON TRACK SAYS NEIL VASANT GENERAL MANAGER OF THE TRANSACTION PRODUCTS BUSINESS AT AT&T'S CONSUMER PRODUCTS GROUP WE'LL COME OUT SWINGING BY THE SECOND HALF PART OF THE AT&T DELAY CAME FROM A MAJOR REENGINEERING OF BOTH THE SOFTWARE THAT'S WRITTEN ON THE CENTRAL CHIP THAT POWERS EACH PHONE AND THE SOFTWARE THAT RUNS THE NETWORK EQUIPMENT THAT HAS TO COPE WITH THE NEW TRANSACTIONPROCESSING MR VASANT SAID ANOTHER CAUSE FOR THE DELAY WAS THE COMPLETE REENGINEERING OF AT&T'S MARKETING PLANS FOR SMARTPHONE ORIGINALLY A PRODUCT OF AT&T'S NETWORK SYSTEMS GROUP WHICH SELLS EQUIPMENT TO PHONE COMPANIES SMARTPHONE WAS TAKEN OVER BY CONSUMER PRODUCTS LAST SPRING AND ELEVATED TO BUSINESS UNIT STATUS WITHIN THE COMPANY MR VASANT RUNS THE NEW UNIT AND MICHAEL GRISHAM THE PHONE'S ORIGINAL DESIGNER WAS REASSIGNED TO OTHER PHONE PROJECTS WITHIN AT&T 9301210097 930121 NUI BID FOR NATURAL GAS SYSTEM BEDMINSTER NJ NUI CORP SAID IT IS ONE OF TWO COMPANIES CHOSEN TO NEGOTIATE TO BUY THE NATURAL GAS DISTRIBUTION SYSTEM OF CORPUS CHRISTI TEXAS THE PROPOSAL BY NUI INCLUDES A BID OF 38 MILLION AFTER FEB 4 ONLY ONE COMPANY WILL CONTINUE TO NEGOTIATE WITH THE CITY A SALE OF THE SYSTEM WOULD ALSO HAVE TO BE APPROVED BY THE PUBLIC IN A REFERENDUM CURRENTLY SET FOR APRIL THE CITY'S GAS SYSTEM SERVES 56000 PRIMARILY RESIDENTIAL CUSTOMERS NUI IS A PUBLIC UTILITY HOLDING COMPANY THAT DISTRIBUTES NATURAL GAS 9301210096 930121 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 3/4 HIGH 2 LOW 3 1/4 NEAR CLOSING BID 3 1/2 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 310 30 TO 89 DAYS 312 90 TO 119 DAYS 315 120 TO 149 DAYS 318 150 TO 179 DAYS 322 180 TO 239 DAYS 332 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 317 30 DAYS 319 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 269 ONE MONTH 273 TWO MONTHS 278 THREE MONTHS 287 SIX MONTHS 310 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 312 ONE MONTH 317 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 307 60 DAYS 308 90 DAYS 314 120 DAYS 317 150 DAYS 318 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 950 JAPAN 450 SWITZERLAND 725 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 313 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 777 60 DAYS 784 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 777 60 DAYS 786 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 555 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301210095 930121 ATLANTA BUSINESSMAN WIFE INDICTED ON CHARGE OF INSURANCE FRAUD MOBILE ALA AN ATLANTA BUSINESSMAN WHOSE INSURANCE OPERATIONS HAVE BEEN THE SUBJECT OF INVESTIGATIONS ACROSS THE COUNTRY HAS BEEN INDICTED ON CHARGES OF INSURANCE FRAUD ALAN TEALE 62 YEARS OLD AND HIS WIFE CHARLOTTE C RENTZ 52 WERE CHARGED BY A FEDERAL GRAND JURY HERE WITH A MASSIVE INSURANCE FAILURE THE 41COUNT INDICTMENT ISSUED LAST WEEK ALLEGES THAT THEY COLLECTED MILLIONS OF DOLLARS IN PREMIUMS AND KNOWINGLY FAILED TO PAY CLAIMS THE DEFENDANTS ARE ALSO ACCUSED OF MONEY LAUNDERING AND USING MAIL FRAUD TO RECEIVE 5 MILLION OR MORE IN RECEIPTS DURING A TWOYEAR PERIOD CHARLES ARCHER DISTRICT DIRECTOR FOR THE FEDERAL BUREAU OF INVESTIGATION IN ALABAMA ESTIMATED THERE ARE 5500 VICTIMS NATIONWIDE WITH UNPAID CLAIMS EXCEEDING 50 MILLION THE HEAVIEST LOSSES OCCURRED TO CLIENTS IN CALIFORNIA MR ARCHER SAID IN A STATEMENT NEITHER MR TEALE NOR MS RENTZ COULD BE REACHED FOR COMMENT THEIR LAWYER WAS ALSO UNAVAILABLE THE ASSOCIATED PRESS HOWEVER REPORTED THAT ROBERT FIERER AN ATLANTA ATTORNEY REPRESENTING THE COUPLE SAID THE TWO ARE INNOCENT OFFICIALS IN MOBILE BECAME INVOLVED IN THE INVESTIGATION BECAUSE THE DEFENDANTS USED A MOBILE COMPANY MIDAMERICAN MANAGEMENT CORP AS PART OF THE ALLEGED FRAUD THAT COMPANY HAS SINCE CLOSED IN THE PAST DECADE MR TEALE OR COMPANIES AFFILIATED WITH HIM HAVE BEEN PROHIBITED FROM INSURANCE OPERATIONS IN AT LEAST NINE STATES 9301210094 930121 OLD MASTERS ARE ART BARGAINS BUT THERE'S PLENTY OF RISK TOO BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANYONE CAN OWN AN OLD MASTER IF THEY DON'T ASK TOO MANY QUESTIONS AN OLD MASTER IS ANY PAINTING OR DRAWING EXECUTED FROM 1300 THROUGH 1800 THAT INCLUDES THE MASTERPIECES OF RUBENS RAPHAEL TITIAN VAN DYCK AND THOUSANDS OF SIMILAR WORKS BY THEIR CONTEMPORARIES STUDENTS AND EVEN IMITATORS RIGHT NOW OLD MASTERS ARE PERHAPS THE BEST VALUE IN THE ART MARKET BUT IT'S A DICEY AND INTIMIDATING FIELD FOR THE NEW COLLECTOR AUCTIONS OF OLD MASTER PAINTINGS ARE BRISK BUSINESSLIKE AND DOMINATED BY DEALERS PAINTINGS OFTEN IN NEED OF A COSTLY CLEANING OR SUBSTANTIAL RESTORATION ARE SOLD AS IS AND WITH AN ARTWORK MORE THAN TWO CENTURIES OLD AN EXPERT'S OPINION ON WHO PAINTED IT IS OFTEN NO MORE THAN A SHOT IN THE DARK THERE ARE NO GUARANTEES AUCTION HOUSES ROUTINELY DO NOT EXTEND THEIR WARRANTIES TO WORKS THAT DATE FROM BEFORE 1870 BUT IT'S THESE QUESTION MARKS SURROUNDING MOST OLD MASTERS THAT MAKE THEM IN TERMS OF QUALITY AND PRICE ONE OF THE GREAT HIDDEN BARGAINS OF THE ART MARKET FOR ABOUT 10000 TO 40000 A COLLECTOR CAN OWN A 17THCENTURY DUTCH STILL LIFE BY AN UNKNOWN HAND A LOVELY SCENE OF A MADONNA AND CHILD OR A VENICE LANDSCAPE BY THE STUDENT OF AN ACKNOWLEDGED MASTER BY COMPARISON YOU WOULD PAY ABOUT THE SAME MONEY FOR A SMALL 1980S SCULPTURE BY JOHN CHAMBERLAIN MADE OF CRUSHED CAR PARTS OR A SINGLE LIMITEDEDITION PRINT BY THE WELLKNOWN JASPER JOHNS AND FOR LESS THAN 10000 A COLLECTOR CAN FIND PORTRAITS OF SAINTS OR GENRE PAINTINGS SKILLFUL BUT STANDARD PASTORAL LANDSCAPES OR FOWL AND GAME PICTURES THESE DAYS OLD MASTER PAINTINGS ARE MUCH EASIER TO SELL THAN A JACKSON POLLACK SAYS NEW YORK PRIVATE ART DEALER LISA DAWN SCHNEIDER THE WHOLE WORLD IS BECOMING MUCH MORE CONSERVATIVE AND YOU DON'T HAVE TO EXPLAIN A DUTCH STILL LIFE NOT THAT OLD MASTERS ARE LIKELY TO PROVIDE THE NEXT ART MARKET BOOM UNLIKE IMPRESSIONIST PAINTINGS WHOSE PRICES SKYROCKETED IN THE LATE 1980S AND HAVE COLLAPSED AS MUCH AS 50 SINCE PRICES OF OLD MASTERS HAVE BEEN STEADY OR SLOWLY INCREASING THE BIBLICAL SUBJECT MATTER OF MANY OLD MASTERS ISN'T TO EVERYONE'S TASTE AND MOST WORKS AREN'T IN PRISTINE CONDITION SAYS IAN KENNEDY HEAD OF THE OLD MASTERS DEPARTMENT AT CHRISTIE'S INTERNATIONAL PLC THE BIG LONDON AUCTION HOUSE AND UNTIL RECENTLY MOST BUYERS OF OLD MASTERS WERE EUROPEANS WHILE THE AIRY SEASCAPES OF CLAUDE MONET AND CHOPPED BRUSHSTROKES OF VINCENT VAN GOGH ARE STANDARD EXAM MATERIAL IN ART HISTORY 101 MOST US COLLEGE STUDENTS LEARN LITTLE ABOUT SCORES OF GREAT RENAISSANCE AND BAROQUE ARTISTS ARTISTS WHO ARE HOUSEHOLD NAMES IN EUROPE TINTORETTO TIEPOLO GUARDI TITIAN ARE LITTLEKNOWN HERE AND COLLECTORS WHO BUY ART FOR ITS BRAGGING VALUE CAN'T IMPRESS THEIR FRIENDS WITH PAINTINGS BY ARTISTS THEY HAVE NEVER HEARD OF SAYS ONE EUROPEAN DEALER AMERICANS KNOW ONLY THE OLD MASTER PAINTERS WHO ARE ON THEIR CHRISTMAS CARDS THAT'S ALL CHANGING HOWEVER THE AMERICAN RESISTANCE TO OLD MASTER ART IS SLOWLY ERODING DEALERS REPORT AND THERE IS AN INFLUX OF NEW US COLLECTORS WHO ARE REFUGEES FROM OTHER AREAS THAT WERE ESCALATING THROUGH THE ROOF SAYS HEIDI CHIN AN EXPERT IN THE OLD MASTER PAINTINGS DEPARTMENT AT SOTHEBY'S HOLDINGS INC NEW YORK SOME OF THE NEWCOMERS ARE IMPRESSIONIST AND CONTEMPORARYART COLLECTORS WHO WERE BURNED BY THE PLUNGE IN ART PRICES IN THOSE FIELDS ONE OF THE PITFALLS OF OLD MASTERS IS THAT EVEN THE EXPERTS OFTEN AREN'T SURE WHO PAINTED THE PICTURES SOME OLD MASTERS ARTISTS SIGNED WORKS PAINTED MOSTLY BY STUDENTS SOME OTHER ARTISTS DIDN'T EVEN SIGN THEIR OWN WORKS WHETHER AN 18TH CENTURY PAINTING IS ATTRIBUTED TO FRANCESCO GUARDI FAMOUS FOR HIS LIGHT LYRICAL LANDSCAPES TO HIS LESSTALENTED BROTHER GIOVANNI GUARDI OR TO ONE OF THE MANY APPRENTICES WHO WORKED UNDER THEIR SUPERVISION CAN MAKE A DIFFERENCE OF MORE THAN 200000 DOLLARS IN A PAINTING'S VALUE AND THAT DETERMINATION IS LEFT TO DEALERS MUSEUMS CURATORS AND OTHER ART EXPERTS WHO SOMETIMES CHANGE THEIR MINDS A FEW YEARS AGO SCHOOL OF REMBRANDT PAINTINGS EXECUTED BY THE SCORES OF APPRENTICES THE DUTCH MASTER KEPT ON STAFF COULD BE HAD FOR A SONG FEW OF THESE WORKS EVER CRACKED THE SIXFIGURE BARRIER THAT WAS BEFORE THE REMBRANDT RESEARCH PROJECT A GROUP OF ART HISTORIANS AND PAINTINGS EXPERTS BEGUN COMPILING THE LATEST CATALOGUE RAISONNE GUIDE TO ALL THE KNOWN WORKS FOR REMBRANDT THE REMBRANDT RESEARCHERS DEBUNKED SCORES OF WORKS INCLUDING SOME NOW ATTRIBUTED TO ARTIST GOVAERT FLINCK WHILE THAT IS BAD NEWS FOR THE OWNERS OF THE NOLONGERREMBRANDTS IT'S TERRIFIC FOR COLLECTORS WHO BOUGHT INEXPENSIVE WORKS KNOWN ALL ALONG TO BE FLINCKS SINCE ANYONE GOOD ENOUGH TO BE MISTAKEN FOR REMBRANDT IS VERY GOOD INDEED FLINCK PRICES HAVE GONE THROUGH THE ROOF GIVEN THE AGE OF OLD MASTER PAINTINGS CONDITION IS THE MARKET'S ACHILLES HEEL MANY WORKS OFTEN REQUIRE A CLEANING THAT CAN COST FROM SEVERAL HUNDRED DOLLARS TO ABOUT 5000 COLLECTORS SHOULD ASK FOR A CONDITION REPORT WHICH IS USUALLY AVAILABLE UPON REQUEST ON ANY OLD MASTER SOLD AT AUCTION EVEN THE LOWESTPRICED ONES SUCH DEFECTS AS A CLEAN RIP UNLESS IT IS DIRECTLY THROUGH THE PAINTING'S CENTRAL IMAGE DOESN'T HURT A WORK'S VALUE AS MUCH AS OVERRESTORATION DOES SAYS GORDON LEWIS PRESIDENT OF STONELEDGE INC A RESTORATION FIRM CLEANING A PAINTING WITH TOO STRONG A VARNISH CAN STRIP GAUZY LAYERS OF PAINT OR THE GLEAM FROM THE EYE OF A FIGURE FACES THAT ARE EXCEPTIONALLY WHITE ARE A DEAD GIVEAWAY OF AN OVERCLEANED PICTURE MR LEWIS SAYS RESTORERS SAY AN OLD MASTER PAINTING HOLDS ITS VALUE EVEN IF THERE HAS BEEN SUBSTANTIAL RESTORATION AS LONG AS IT IS ONLY IN THE BACKGROUND BUT IF A FACE OF A PAINTING BY FRANS HALS HAS BEEN RESTORED THE VALUE OF THE WORK IS DIMINISHED CONSIDERABLY SINCE HALS IS FAMOUS FOR HIS FACIAL EXPRESSIONS HOW DOES OLD MASTER ART HOLD UP AS AN INVESTMENT ACCORDING TO SALOMON BROTHERS INC'S ANNUAL ASSET SURVEY OLD MASTERS SHOWED AN ANNUAL RETURN OF 133 IN THE 10 YEARS ENDED JUNE 1 1992 A RATE THAT RANKED THEM AS THE THIRDBEST PERFORMING ASSET AFTER STOCKS AND BONDS BUT SALOMON GETS ITS ARTPERFORMANCE DATA FROM ARTSELLER SOTHEBY'S WHOSE OWN DISCLAIMER ON ITS ART INDEX IS CONSIDERABLE SOTHEBY'S STATES THAT THE INDEX IS SUBJECTIVE AND THAT NOTHING IS INTENDED AS INVESTMENT ADVICE OR AS A PREDICTION OR GUARANTEE OF FUTURE PERFORMANCE OR OTHERWISE ARTAUCTION HOUSES AND DEALERS RECOGNIZE SEVERAL LEVELS OF AUTHENTICITY FOR OLD MASTER PAINTINGS WITH TOPLEVEL WORKS CARRYING THE HIGHEST PRICES PAINTINGS EXECUTED BEFORE 1870 9301210093 930121 BUSINESS BRIEF AST RESEARCH INC COMPANY SAYS PROFIT FELL 13 IN FISCAL SECOND QUARTER STUNG BY THE PERSONAL COMPUTER PRICE WARS AND HIGH FREIGHT COST AST RESEARCH INC IRVINE CALIF SAID FISCAL SECONDQUARTER PROFIT FELL 13 TO 146 MILLION OR 46 CENTS A SHARE FROM 167 MILLION OR 52 CENTS A SHARE A YEAR EARLIER BUT THE COMPANY SAID GROWTH IN VOLUME SALES AND MARKET SHARE LED TO RECORD REVENUE OF 3463 MILLION IN THE PERIOD ENDED JAN 2 UP 45 FROM 2391 MILLION A YEAR EARLIER FOR THE SIX MONTHS AST POSTED PROFIT OF 222 MILLION OR 70 CENTS A SHARE DOWN ABOUT A THIRD FROM 331 MILLION OR 104 A SHARE SALES SURGED TO 6327 MILLION FROM 4362 MILLION IN LAST YEAR'S FIRST HALF 9301210092 930121 LETTERS TO THE EDITOR IMERGY DESIGNED FIRST PHOTOCD YOUR DEC 17 PERSONAL TECHNOLOGY COLUMN SHOWCASING RICK SMOLAN'S FROM ALICE TO OCEAN CERTAINLY CAPTURED THE ESSENCE OF OUR EXCITING NEW MEANS OF ELECTRONIC READING THE ELECTRONIC VERSION OF ROBYN DAVIDSON'S TRIP PACKAGED WITH THE CLASSIC BOOK IN PRINT IS TRULY A FIRST IN PUBLISHING HOWEVER YOU ARE NOT TOTALLY ACCURATE AS TO YOUR STATEMENT OF THE ORIGINS AND CREDITS FOR THE PHOTOCD VERSION OF THIS PROJECT IF YOU REFER TO THE CREDITS INSIDE THE BOOK OR ON THE PHOTOCD DISK ITSELF YOU WILL SEE THAT IMERGY THE IMERGISTS OF NORWALK CONN DESIGNED THE PHOTOCD VERSION IMERGY CONSULTANTS TO KODAK ON PHOTOCD ACTUALLY PREPARED THE VERY FIRST PHOTOCD PROTOTYPE THAT INCORPORATED SOUND FOR THE PRESENTATION TO KODAK 9301210091 930121 MARKETING & MEDIA TIME WARNER MULLING BOARD CHANGES SEEKS INPUT FROM LARGE SHAREHOLDERS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL TIME WARNER INC PREPARING TO RESTRUCTURE ITS BOARD FOLLOWING A SHAKEUP LAST MONTH IS ASKING SOME OF ITS LARGE SHAREHOLDERS TO HELP IT DRAW UP A LIST OF DIRECTOR CANDIDATES TIME WARNER DIRECTORS ARE SCHEDULED TO MEET TODAY FOR THE FIRST TIME SINCE THE BOARD CHANGES WHICH CAME ON THE SAME DAY AS THE DEATH OF STEVEN J ROSS WHO WAS CHAIRMAN AND COCHIEF EXECUTIVE ALTHOUGH NO FORMAL DISCUSSIONS ABOUT NEW DIRECTORS ARE ON THE AGENDA TIME WARNER HAS ALREADY SOUGHT INPUT FROM MAJOR SHAREHOLDERS INCLUDING THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM MEANWHILE GERALD R LEVIN THE COCHIEF EXECUTIVE WHO SUCCEEDED MR ROSS IS SAID BY COMPANY INSIDERS TO BE WEIGHING A NUMBER OF OPTIONS TO STRUCTURE HIS OWN MANAGEMENT TEAM MR LEVIN IS NOW SOLE CEO AT THE ENTERTAINMENT COMPANY FORMED BY THE 1989 MERGER OF TIME INC AND WARNER COMMUNICATIONS INC CALPERS A HIGHLY ACTIVIST WARNER SHAREHOLDER BEGAN PRESSURING TIME WARNER TO REDUCE THE NUMBER OF INSIDERS ON ITS 21MEMBER BOARD LAST YEAR MR LEVIN AND SOME OTHER DIRECTORS WERE ALSO CONCERNED ABOUT THE BOARD'S UNWIELDY SIZE AND ITS IMAGE AS A RUBBERSTAMP BODY THAT AWARDED HIGH SALARIES TO CORPORATE EXECUTIVES IN LATE DECEMBER THE COMPANY SOUGHT AND RECEIVED THE RESIGNATIONS OF EIGHT DIRECTORS INCLUDING ALL BUT TWO INSIDERS THE RESIGNATIONS WERE ANNOUNCED ON THE DAY MR ROSS DIED DALE HANSON A SENIOR CALPERS EXECUTIVE SAID TIME WARNER HAS ASKED IT TO SUGGEST POTENTIAL NOMINEES TO FILL SOME OF THE BOARD POSTS CLEARLY THE COMPANY CAN USE SOME HORSEPOWER HE SAID HE SAID CALPERS IS PREPARING A LIST OF CANDIDATES TIME WARNER DECLINED COMMENT BUT THE COMPANY'S OWN DIRECTORS ARE ALSO ACTIVELY SEEKING SUCH CANDIDATES WHILE THE COMPANY HAS LONG BEEN UNDER PRESSURE TO RESTRUCTURE THE BOARD COMPANY INSIDERS SAY MR LEVIN DOESN'T FEEL UNDER ANY IMMEDIATE PRESSURE TO NAME A SECOND IN COMMAND RIGHT AWAY MR ROSS NEVER HAD A PRESIDENT AND CHIEF OPERATING OFFICER WHILE AT WARNER AND THERE ARE STRONG HEADS AT ALL THE MAJOR UNITS OF THE COMBINED COMPANY INCLUDING WARNER BROS STUDIOS HOME BOX OFFICE WARNER RECORDS GROUP TIME INC MAGAZINES AND THE CABLE TELEVISION UNIT THE DIVISIONS ARE WELL RUN BY STRONG MANAGEMENT AND THERE IS NO MAJOR PRESSURE TO BUILD UP THE CORPORATE HIERARCHY SAYS ONE COMPANY DIRECTOR HOWEVER HE ADDED THERE IS CONCERN ABOUT THE LACK OF A SUCCESSOR SHOULD SOMETHING HAPPEN TO MR LEVIN BECAUSE MR LEVIN IS A TIME VETERAN THERE HAS BEEN SOME SPECULATION HE WOULD ELEVATE A WARNER EXECUTIVE TO A NEWLY CREATED POST OF PRESIDENT TO BALANCE TOP MANAGEMENT SOME WARNER DIVISION EXECUTIVES ARE SAID BY ONE INSIDER TO STILL BE CONCERNED ABOUT MR LEVIN'S FUTURE PLANS IN THE WAKE OF THE REORGANIZATION THAT REMOVED MANY OF THE OLD WARNER INSIDERS FROM THE BOARD HOWEVER COMPANY EXECUTIVES AND WALL STREET OBSERVERS AGREE THAT THERE IS NO OBVIOUS INTERNAL CANDIDATE AT THE COMPANY DESPITE THE MANY STRONG DIVISION HEADS AND NAMING ONE DIVISION HEAD OVER THE OTHERS MIGHT CAUSE INTERNAL STRIFE MOREOVER SOME OF THE DIVISION HEADS ARE STRONGLY ENTRENCHED IN THEIR OWN BUSINESSES AND ARE WORKING UNDER COMPENSATION ARRANGEMENTS THAT PAY THEM MORE HIGHLY THAN CORPORATE EXECUTIVES INCLUDING MR LEVIN HIMSELF 9301210090 930121 TECHNOLOGY BRIEF NYNEX CORP FIBEROPTIC PROJECT TO LINK UK AND JAPAN ADVANCES NYNEX CORP SAID THE ROUTE FOR THE PROPOSED UNDERSEA FIBEROPTIC LINK BETWEEN THE UK AND JAPAN HAS BEEN DECIDED WITH AN AGREEMENT BY A JAPANESE COMMUNICATIONS COMPANY TO LAND THE CABLE THE NEXT STEP WILL COME IN APRIL WHEN TELEPHONE COMPANIES FROM EUROPE THE MIDDLE EAST AND ASIA ARE SCHEDULED TO MEET IN SINGAPORE TO NEGOTIATE HOW MUCH CAPACITY THEY WILL BUY ON THE CABLE AFTER THAT SESSION THE BOARD OF THE REGIONAL BELL TELECOMMUNICATIONS COMPANY BASED IN WHITE PLAINS NY WILL APPROVE OR REJECT THE PROJECT WHICH IS A JOINT VENTURE OF NYNEX'S NETWORK SYSTEMS CO UNIT THE DALLAH AL BARAKA GROUP OF SAUDI ARABIA GULF ASSOCIATES INC OF NEW YORK AND MARUBENI CORP OF JAPAN THE PROJECT CALLED THE FIBEROPTIC LINK AROUND THE GLOBE OR FLAG NAMED GABRIEL YACKANICH PRESIDENT AND CHIEF EXECUTIVE OFFICER HE HAD BEEN IN CHARGE OF ENGINEERING WITHIN MANHATTAN FOR NYNEX'S NEW YORK TELEPHONE CO UNIT 9301210088 930121 CORRECTIONS & AMPLIFICATIONS KELLOGG CO EARNED IN THE FOURTH QUARTER 1279 MILLION OR 54 CENTS A SHARE COMPARED WITH 1182 MILLION OR 49 CENTS A SHARE A YEAR EARLIER IN YESTERDAY'S ABREAST OF THE MARKET COLUMN IT WAS INCORRECTLY STATED THAT KELLOGG EARNED 142 BILLION FOR THE QUARTER COMPARED WITH 145 BILLION A YEAR EARLIER WHITNEY HOUSTON'S SOLE ATTORNEY IS SHELDON PLATT A JAN 13 ARTICLE MISTAKENLY REPORTED THAT PAUL MARSHALL IS HER LAWYER MR MARSHALL DID SOME LEGAL WORK FOR MS HOUSTON PRIOR TO 1988 WHILE IN PARTNERSHIP WITH MR PLATT BUT THAT PARTNERSHIP HAS SINCE DISSOLVED PACIFIC TELESIS GROUP REPORTED 1991 FOURTHQUARTER OPERATING EARNINGS OF 71 CENTS A SHARE THE FIGURE WAS MISSTATED AS 77 CENTS A SHARE IN AN ARTICLE TUESDAY ABOUT PHONE COMPANIES' FOURTHQUARTER EARNINGS EXPECTATIONS HCAHOSPITAL CORP OF AMERICA SAID IT HAS EITHER SOLD OR HAS AGREEMENTS IN PRINCIPLE TO SELL 19 PSYCHIATRIC HOSPITALS AN ARTICLE YESTERDAY SAID THESE AGREEMENTS WERE UNDER CONTRACT BASED ON INFORMATION PROVIDED BY HCA 9301210087 930121 LEISURE & ARTS BEST SELLERS COMPILED BY PUBLISHERS WEEKLY FROM DATA FROM LARGECITY BOOKSTORES BOOKSTORE CHAINS AND LOCAL BESTSELLER LISTS ACROSS THE US COPYRIGHT 1993 REED PUBLISHING USA 9301210086 930121 CORPORATE FOCUS LSI LOGIC'S COSTCUTTING EFFORTS PRODUCE A PAYOFF FIRST PROFIT IN THREE QUARTERS FOLLOWS STRONG CHIP SALES LEANER STRATEGY BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MILPITAS CALIF WORKERS AT LSI LOGIC CORP KNEW THE COMPANY HAD FINALLY TURNED AROUND WHEN ON DEC 1 IT CANCELED ITS YEAREND HOLIDAY SHUTDOWN FOR THE FIRST TIME IN FOUR YEARS THE CHIP MAKER AWASH IN UNNEEDED FACTORY CAPACITY HAD CLOSED FOR A WEEK EVERY YEAR TO SAVE THE COSTS OF RUNNING PLANTS BUILT TO FILL ORDERS THAT NEVER MATERIALIZED AFTER EFFORTS TO SNIP AWAY AT EXCESS CAPACITY IN 1989 AND 1990 PROVED INSUFFICIENT LSI TOOK A 102 MILLION CHARGE LAST YEAR TO CLOSE FACTORIES CUT STAFF AND ABANDON LOWPROFIT PRODUCTS THE BIG WRITEOFF WAS VERY CATHARTIC SAYS WILFRED CORRIGAN LSI'S CHIEF EXECUTIVE IT WASN'T JUST ADMITTING A MISTAKE IT WAS REPOSITIONING THE COMPANY THE FIRST FRUITS OF THAT CATHARSIS CAME TO LIGHT YESTERDAY WHEN LSI REPORTED ITS FIRST PROFIT IN THREE QUARTERS FOR THE FOURTH QUARTER LSI POSTED NET INCOME OF 67 MILLION OR 15 CENTS A SHARE COMPARED WITH 939000 OR TWO CENTS A SHARE IN THE YEARAGO PERIOD THE RESULTS TOPPED ANALYSTS' ESTIMATES WHICH AVERAGED ABOUT SEVEN CENTS A SHARE AND WENT AS HIGH AS 13 CENTS THE QUARTER'S REVENUE OF 161 MILLION WAS DOWN FROM 1642 MILLION A YEAR BEFORE BUT UP 5 FROM THE THIRD QUARTER LSI ATTRIBUTED ITS GOOD EARNINGS IN PART TO STRONG SALES OF THE CHIPS IT SUPPLIES TO THE TELECOMMUNICATIONS AND PERSONALCOMPUTER INDUSTRIES AND TO WORKSTATION MAKERS SUCH AS SUN MICROSYSTEMS INC SILICON GRAPHICS INC AND DIGITAL EQUIPMENT CORP BUT THE MORE SIGNIFICANT CLUE TO LSI'S IMPROVED LOT LIES IN ITS GROSS PROFIT MARGIN WHICH ROSE TO 366 IN THE FOURTH QUARTER FROM 338 A YEAR BEFORE THERE'S BEEN A CHANGE IN THE CORPORATE MENTALITY THERE SAYS ANALYST MARK EDELSTONE OF PRUDENTIAL SECURITIES INC IN THE 80S THEIR OVERALL STRATEGY WAS TO BECOME A BIG COMPANY AS QUICKLY AS THEY COULD NOW THEIR AIM IS TO DRIVE PROFITABILITY THE LEANER LSI WOULD SEEM WELL POSITIONED TO PROFIT FROM NEW TRENDS AMONG THE WORLD'S ELECTRONICS COMPANIES WHICH INCREASINGLY DEMAND CUSTOMMADE CHIPS TO GIVE THEIR PRODUCTS AN EDGE OVER RIVALS' LSI IS A WORLD LEADER IN TAILORMADE CHIPS CALLED APPLICATIONSPECIFIC INTEGRATED CIRCUITS OR ASICS BECAUSE OF ITS BIG LIBRARY OF PREDESIGNED CIRCUITS THAT ITS CHIPLAYOUT SOFTWARE CAN QUICKLY STITCH TOGETHER IN COMPUTERIZED BLUEPRINTS THAT ITS FACTORIES ETCH INTO SILICON LSI HIT HARD TIMES EARLY LAST YEAR WHEN ITS SALES TO THE MILITARY AND AEROSPACE INDUSTRIES PLUMMETED THE ASIC MARKET SLOWED AND WORKSTATION MAKERS HELD BACK ON CHIP PURCHASES WHILE THEY INTRODUCED NEW COMPUTER LINES BUT THE BIGGEST DRAG ON EARNINGS HARKED BACK TO THE MID1980S WHEN THE COMPANY BUILT FACTORIES IN ANTICIPATION OF STRONG DEMAND FOR CHIPS FOR BIG COMPUTERS MADE BY COMPANIES LIKE DIGITAL AND INTERNATIONAL BUSINESS MACHINES CORP AT THE SAME TIME LSI BUILT PLANTS IN ENGLAND AND GERMANY EXPECTING A BOOM IN EUROPE'S COMPUTER INDUSTRY LSI BEGAN TRYING TO FILL ITS FACTORIES WITH CHIPS IT MADE FOR ITS NEW BUSINESS IN COMPUTERGRAPHICS BOARDS WITH CHIP SETS THAT MAKE UP MUCH OF THE INNARDS OF PCS AND WITH LOWPROFITMARGIN ASICS BUT BY LATE 1991 FIERCE PRICE WARS ERUPTED IN THE MARKETS FOR THOSE PRODUCTS IN 1992 LSI WAS LEFT WITH HALFIDLE FACTORIES AND A PRODUCT PORTFOLIO PLAGUED BY LOWPROFIT PRODUCTS THAT SAYS CHIEF FINANCIAL OFFICER ALBERT PIMENTAL WE WERE HEMORRHAGING FROM HAVING SEEN LITTLE EFFECT FROM PREVIOUS EFFORTS TO CUT COSTS MR CORRIGAN DECIDED ON STRONG MEDICINE LSI TOOK THE 102 MILLION THIRDQUARTER CHARGE TO CLOSE A GERMAN FACTORY SET ASIDE RESERVES FOR FURTHER PLANT CLOSINGS AND COVER BIG LAYOFFS IT SOLD ITS GRAPHICSCARD BUSINESS LEFT MARKETS FOR LOWPROFIT PC CHIP SETS AND BEGAN AVOIDING CUSTOMCHIP CONTRACTS WITH LOW MARGINS THE RESULTS LSI'S FACTORY UTILIZATION ROSE TO MORE THAN 80 BY YEAR END FROM 55 LAST SUMMER EMPLOYEES NOW NUMBER 3400 COMPARED WITH 4500 IN JUNE LSI HAS SHAVED 10 MILLION OFF QUARTERLY EXPENSES AND IT PARED INVENTORY TO 635 MILLION AT YEAR END FROM 88 MILLION A YEAR EARLIER ITS STOCK WHICH TUMBLED LAST YEAR AFTER THE COMPANY POSTED NET LOSSES FOR THE SECOND AND THIRD QUARTERS ROSE 25 CENTS YESTERDAY TO 1175 MORE THAN TWICE ITS 1992 LOW OF 5375 THE COMPANY RELEASED ITS LATEST EARNINGS REPORT AFTER THE MARKET CLOSED THE COMPANY ALSO DECIDED TO CUT FIXED COSTS AND CREATE A BUFFER AGAINST FUTURE DOWNTURNS BY CONTRACTING OUT SOME MANUFACTURING TASKS EARLY LAST YEAR FOR INSTANCE LSI TESTED AND ASSEMBLED 80 OF THE CHIPS ITS FACTORIES MADE TODAY IT CONTRACTS OUT ALL TEST AND ASSEMBLY A RELATIVELY LOWTECHNOLOGY PROCESS IT ALSO HIRES TEMPORARY WORKERS FOR MOST NEW FACTORY JOBS CREATED BY NEW CHIP DEMAND LSI EXPECTS TO SATISFY ANY NEED FOR MORE FACTORY CAPACITY THROUGH PARTNERSHIPS AND JOINT VENTURES LIKE THE ONE IT INKED LAST YEAR WITH EASTERN GERMANY CHIP MAKER THESYS INC IN WHICH LSI TOOK A MINORITY EQUITY STAKE NOW MR CORRIGAN SAYS IF DEMAND IS THERE WE CAN MEET IT WITHOUT HAVING TO ADD OVERHEAD OR FIXED COSTS BY KEEPING FIXED COSTS DOWN WHILE FOCUSING ON SUPPLYING HIGHMARGIN CUSTOM CHIPS MR CORRIGAN SAYS HE EXPECTS LSI'S GROSS MARGINS TO INCREASE A PERCENTAGE POINT PER QUARTER ADDING THAT THE COMPANY IS AHEAD OF ITS TIMETABLE TO REACH A GROSS MARGIN OF 40 IN THE FOURTH QUARTER MEANWHILE LSI EXPECTS NEW REVENUE IN 1993 FROM 48 NEW CONTRACTS TO MAKE CUSTOM CHIPS FOR RAPIDLY GROWING NETWORKING COMPANIES SUCH AS CABLETRON SYSTEMS INC AND WELLFLEET COMMUNICATIONS INC DELL COMPUTER CORP PLANS TO USE LSI CHIP SETS IN MANY OF ITS NEW PCS AND LSI EXPECTS INCREASED BUSINESS THIS YEAR FROM FRENCH TELECOMMUNICATIONS FIRM ALCATEL NV AND JAPAN'S SONY CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO APPLE COMPUTER INC PLANS TO USE AN LSI CHIP IN SOME OF ITS FUTURE NEWTON PALMTOP COMPUTERS AND INTEL CORP INTENDS TO SELL CHIPS MADE UNDER CONTRACT BY LSI TO SUPPLEMENT INTEL'S 486 AND PENTIUM MICROPROCESSORS LSI'S STRATEGY IS SOLIDIFYING A STRONG RELATIONSHIP WITH A LEADER IN EACH OF THESE SEGMENT AREAS SAYS ANALYST TOM THORNHILL OF MONTGOMERY SECURITIES BY WORKING CLOSELY WITH THESE PARTICULAR COMPANIES AND MEETING THEIR NEEDS BY DEFINITION LSI IS MEETING THE NEEDS OF OTHER COMPANIES IN THE INDUSTRY A POWERFUL LSI WEAPON MR THORNHILL SAYS IS ITS NEW MANUFACTURING TECHNOLOGY WHICH ALLOWS IT TO BUILD ASICS WITH CIRCUITS THAT ARE 06 MICRONS APART AN INCH DIVIDED BY 40000 SMALLER THAN WHAT MOST RIVAL CHIP FACTORIES CAN PRODUCE LSI EXPECTS TO PRODUCE 05 MICRON CIRCUITS BY SUMMER THAT IS A REAL VALUE ADDED MR THORNHILL SAYS BECAUSE IT ALLOWS LSI TO PACK MORE CIRCUITS INTO EACH CHIP APPLICATIONSPECIFIC INTEGRATED CIRCUITS FOR THE COMPUTER TELECOMMUNICATIONS MILITARY AND CONSUMER ELECTRONIC INDUSTRIES 9301210084 930121 GE POSTS 62 RISE IN 4THQUARTER NET RECORD 1992 PROFIT BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO'S FOURTHQUARTER EARNINGS ROSE 62 TO A RECORD 134 BILLION AIDED BY DOUBLEDIGIT EARNINGS INCREASES AT ITS FINANCIAL SUBSIDIARY BUT THE SHOWING DISAPPOINTED WALL STREET THE LATEST RESULTS BROUGHT FULLYEAR EARNINGS TO RECORD LEVELS FOR THE COMPANY JOHN F WELCH JR CHAIRMAN CALLED THE PERFORMANCE REWARDING IN LIGHT OF THE SLOW ECONOMIC GROWTH IN THE US AND THE REST OF THE WORLD WE ENTER 1993 BETTER POSITIONED THAN EVER BEFORE WITH A STRONG BALANCE SHEET VERY STRONG CASH FLOWS AND EXCELLENT PROSPECTS FOR EARNINGS GROWTH HE SAID THE EARNINGS WERE AT THE LOWER END OF ANALYSTS' ESTIMATES HOWEVER GE'S STOCK SLIPPED 150 TO 82625 ON THE NEW YORK STOCK EXCHANGE ABOUT 15 MILLION SHARES WERE TRADED IN THE LATEST PERIOD THE FAIRFIELD CONN COMPANY EARNED 157 A SHARE COMPARED WITH 126 BILLION OR 146 A SHARE A YEAR EARLIER REVENUE ROSE TO 178 BILLION FROM 176 BILLION FOR THE FULL YEAR GE'S PROFIT ROSE 65 TO 473 BILLION OR 551 A SHARE FROM 444 BILLION OR 510 A SHARE IN 1991 BEFORE A ONETIME CHARGE FOR AN ACCOUNTING CHANGE AFTER THE CHANGE 1991 NET INCOME WAS 264 BILLION REVENUE FOR 1992 ROSE 33 TO 622 BILLION FROM 602 BILLION GE SAID THAT AFTER ACCOUNTING FOR THE PLANNED DIVESTITURE OF ITS AEROSPACE BUSINESS ITS 1992 EARNINGS FROM CONTINUING OPERATIONS WILL BE ABOUT 10 HIGHER THAN IN 1991 GE ANNOUNCED LATE LAST YEAR THAT IT WOULD DIVEST ITSELF OF THE BUSINESS BY MERGING IT WITH MARTIN MARIETTA CORP IT SAID THE AGREEMENT WHICH IS SUBJECT TO APPROVAL BY MARTIN MARIETTA SHAREHOLDERS AND REGULATORS IS EXPECTED TO BE COMPLETED IN THE FIRST HALF OF THIS YEAR FOR 1992 REPORTING PURPOSES THE BUSINESS WILL BE CLASSIFIED AS A DISCONTINUED OPERATION MR WELCH THE GE CHAIRMAN SAID GE FINANCIAL SERVICES LED IN CONTRIBUTIONS TO THE COMPANY'S IMPROVED BOTTOM LINE IN 1992 OF THE COMPANY'S 13 DIFFERENT BUSINESSES ONLY TWO OTHERSPOWER SYSTEMS AND MEDICAL SYSTEMSPOSTED INCREASES IN EARNINGS FROM 1991 GE FINANCIAL SERVICES' PROFIT ROSE 18 TO 15 BILLION GE SAID ITS POWER SYSTEMS POSTED A DOUBLEDIGIT INCREASE OVER 1991 IN OPERATING PROFIT GENERATED LARGELY BY PRODUCTIVITY GAINS AND MODEST INCREASES IN REVENUE FROM POWER GENERATION EQUIPMENT GE'S TECHNICAL PRODUCTS & SERVICES UNIT WHICH INCLUDES MEDICAL SYSTEMS HAD SHARPLY HIGHER OPERATING PROFITS COMPARED WITH 1991 THE COMPANY SAID GE SAID OPERATING PROFIT AT ITS APPLIANCE BUSINESS WAS MODERATELY LOWER THAN 1991 GE AIRCRAFT ENGINE REVENUES AND OPERATING PROFIT DECREASED SOMEWHAT REFLECTING DECLINING MILITARY ENGINE SHIPMENTS AND A WEAKNESS IN SPARE PARTS SALES TO COMMERCIAL AIRLINES OPERATING PROFIT AT GE'S BROADCASTING UNIT WHICH INCLUDES NBC WAS SLIGHTLY LOWER THAN IN 1991 WHEN THE UNIT HAD A GAIN ON THE SALE OF NBC'S INTEREST IN A HOMEVIDEO JOINT VENTURE BROADCASTING REVENUE HOWEVER WAS SOMEWHAT HIGHER BECAUSE OF THE SUMMER OLYMPICS GE SAID WALL STREET ANALYSTS ACCORDING TO A CONSENSUS REPORT HAD EXPECTED GE TO EARN ABOUT 161 A SHARE IN THE FOURTH QUARTER OF 1992 SLIGHTLY HIGHER THAN THE 157 A SHARE GE REPORTED THEIR ESTIMATES FOR THE YEAR RANGED FROM 550 TO 560 A SHARE MARTIN SANKEY AN ANALYST AT FIRST BOSTON SAID THE LOWERTHANEXPECTED RESULTS CAUSED GE'S STOCK PRICE TO SKID YESTERDAY AND THE MARKET'S OVERALL DOWNTURN YESTERDAY DIDN'T HELP GE EITHER HE SAID NEVERTHELESS MR SANKEY SAID 1992 WASN'T A BAD YEAR FOR GE CONSIDERING THE ECONOMIC ENVIRONMENT JOHN HILTON AN ANALYST AT ARGUS RESEARCH CORP SAID THAT EVEN THOUGH GE'S LATEST RESULTS WERE LOWER THAN HIS ESTIMATES I AM FOCUSING MORE ON 1993 HE SAID HE EXPECTS THE GROWING ORDER RATES IN POWER SYSTEMS MEDICAL SYSTEMS AND SEVERAL OTHER MAJOR BUSINESS SEGMENTS ALONG WITH PRODUCTIVITY IMPROVEMENTS TO BOLSTER GE'S PROFIT ANALYSTS EXPECT GE TO EARN 580 TO 630 A SHARE THIS YEAR 9301210083 930121 AIRBUS IS SAID TO STEP UP BOEING DUEL BY TRYING TO WREST AWAY UAL ORDERS BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL AIRBUS INDUSTRIE HAS AGAIN OPENED FIRE ON BOEING CO ATTEMPTING TO CAPTURE MORE OF THE SEATTLE JETLINER MAKER'S BUSINESS SUPPLYING THE COVETED FLEET OF UNITED AIRLINES ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE ACTION BY THE EUROPEAN CONSORTIUM WHICH NOW PROPOSES TO SUBSTITUTE ITS FOURENGINE A340 JETLINERS FOR THE BOEING 747 AND 777 PLANES ALREADY ORDERED BY UNITED HAS TOUCHED OFF ALARMS AT BOEING IN THE WAKE OF THE AIRBUS PROPOSAL TO UNITED LAST MONTH THE CARRIER HAS HELD A FLURRY OF NEW HIGHLEVEL TALKS WITH BOTH AIRCRAFT BUILDERS PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID A SPOKESWOMAN FOR THE NORTH AMERICAN SALES ARM OF AIRBUS IN HERNDON VA SAID THE COMPANY WOULD LOVE TO SELL UNITED A340S ALONG WITH OTHER PRODUCTS AND IS TALKING WITH THE AIRLINE ABOUT VARIOUS POSSIBILITIES BUT AT NO TIME DURING THOSE DISCUSSIONS HAS IT FOCUSED ON OUR TRYING TO SEIZE UNITED'S EXISTING ORDERS FOR BOEING AIRCRAFT SHE ADDED NONETHELESS PEOPLE FAMILIAR WITH BOEING SAID THAT AIRBUS'S BOLD MOVE HAS PROMPTED THE SEATTLE COMPANY'S BRASS TO BEGIN REVIEWING THE OPTION OF REQUESTING TRADE SANCTIONS FOR UNFAIR PRICING PRACTICES AIRBUS FIRST SLIPPED INTO THE PLANNING FOR UNITED'S HUGE 509JET FLEET IN JULY WHEN THE CARRIER ORDERED AS MANY AS 100 MIDSIZE A320 AIRLINERS VALUED AT 3 BILLION THAT MANUEVER BROKE A 14YEAR STRING OF UNITED PURCHASES FROM BOEING WHICH HAD PUT UP ITS TWINENGINE 737400 AGAINST THE SIMILARLY SIZED A320 ANY NEW SUCCESS WITH THE AIRLINE UNIT OF CHICAGOBASED UAL CORP BOEING'S LARGEST CUSTOMER WOULD SEVERELY DEEPEN THE WOUND FOR THE US CONCERN UNITED IS BOEING'S LAUNCH CUSTOMER FOR ITS COSTLY TWINENGINE 777 PROGRAM AND IS DUE TO TAKE THE FIRST DELIVERIES IN 1995 FOR THE 34 PLANES IT HAS ON ORDER BOEING IS SCHEDULED TO DELIVER 26 OF ITS FOURENGINE 747S TO UNITED AND 777S AND 747S TOGETHER MAKE UP MORE THAN 7 BILLION OF BOEING'S BACKLOG UNITED ALSO HAS OPTIONS FOR ANOTHER 34 OF THE 777S AND 30 JUMBO 747S A UNITED SPOKESMAN CONFIRMED THAT WE ARE NEGOTIATING WITH BOEING BUT WOULDN'T DISCUSS THE MODELS INVOLVED OR COMMENT ON WHETHER THE AIRLINE IS TALKING TO AIRBUS ABOUT THE A340S BOEING OFFICIALS COULDN'T BE REACHED FOR COMMENT THE LATEST AIRBUS PUSH UNDERSCORES THE PRESSURE ON BOTH JET MAKERS TO PLACE PLANES AS FINANCIAL PROBLEMS DEEPEN FOR CARRIERS IN THE WESTERN WORLD AND IT HEIGHTENS ITS DUEL WITH BOEING THE WORLD'S LARGEST SUPPLIER OF AIRCRAFT EARLY NEXT WEEK BOEING IS EXPECTED TO ANNOUNCE THAT IT HAS SUCCESSFULLY CUT A DEAL WITH AIRBUS'S FOUR MEMBER COMPANIES TO COOPERATE ON THE EARLY DEVELOPMENT OF A NEW 600SEAT SUPERJUMBO JET AN EVENT THAT COULD UNDERMINE SUCH AN EFFORT BY THE CONSORTIUM ITSELF AIRBUS'S LATEST VOLLEY COMES AS IT FACES INCREASING ORDER CANCELLATIONS AND SOME DEVELOPMENT PROBLEMS WITH THE FOURENGINE A340 LATE LAST YEAR NORTHWEST AIRLINES DELETED 24 A340 ORDERS FROM ITS FLEET PLAN WHILE IRISH LESSOR GPA PLC HAS SCRATCHED ALL A340 ORDERS ON FRIDAY AFTER TALKS WITH AIRBUS HAD ADVANCED TO SENIOR LEVELS BOEING CHAIRMAN FRANK SHRONTZ AND PRESIDENT PHILIP CONDIT TOOK UP THE MATTER PERSONALLY WITH UAL CHAIRMAN STEPHEN WOLF AND VICE CHAIRMAN JOHN C POPE UNITED'S CHIEF FINANCIAL OFFICER ACCORDING TO A PERSON FAMILIAR WITH THE DISCUSSION AND TALKS AT OTHER LEVELS HAVE CONTINUED THIS WEEK WHILE DETAILS WEREN'T AVAILABLE MR POPE WAS SCHEDULED TO BE IN SEATTLE LATE THIS WEEK IN PART TO SPEAK TO A REGULAR SESSION OF THE BOEING MANAGEMENT ASSOCIATION OF COMPANY OFFICIALS BOEING'S BIG CONCERN IS SAID TO BE THAT AIRBUS IS TRYING TO PLACE AT UNITED SOME A340 JETS THAT HAD BEEN SLATED TO GO TO NORTHWEST BEGINNING IN MARCH AND IS SUSPECTED BY BOEING OF USING ALLEGEDLY UNFAIR PRICES OR TERMS THAT DON'T ADEQUATELY REFLECT COSTS WHILE AIRBUS AND BOEING HAVE SETTLED THEIR LONGSTANDING DISPUTE OVER EUROPEAN SUBSIDIES TO THE CONSORTIUM PRICINGRELATED COMPLAINTS AND ACTIONS ARE STILL PERMITTED UNDER INTERNATIONAL TRADE AGREEMENTS THE FIRST A340 DELIVERIES ARE SCHEDULED TO BEGIN IN 30 DAYS TO GERMANY'S LUFTHANSA AG A PERSON CLOSE TO THE JET'S DEVELOPMENT SAID IT CURRENTLY IS ABOUT 4 TO 5 BELOW SOME TARGETS SET FOR PAYLOAD RANGE AND FUEL EFFICIENCY A NOTABLE DEFICIENCY THOUGH SOMEWHAT BETTER THAN THE 7 SHORTFALL THAT HAD BEEN WIDELY RUMORED IN THE INDUSTRY PEOPLE FAMILIAR WITH THE UNITEDAIRBUS DISCUSSION SAID THEY HAVE TALKED ABOUT THE CARRIER'S DESIRE TO WIN THE SAME WALKAWAY LEASES ON A340 MODELS THAT THE AIRLINE RECEIVED FOR ITS A320S IN GENERAL SUCH LEASE TERMS ALLOW AIRLINES TO RETURN JETS ON SHORT NOTICE WITH LOW PENALTIES PEOPLE FAMILIAR WITH THE VIEWS OF AIRBUS AND BOEING ARE SUGGESTING THAT UNITED MANAGERS MIGHT BE BIDDING ULTIMATELY TO SQUEEZE BOEING FOR LOWER PRICES AND BETTER TERMS ON THE 100 MILLION 777S AND 140 MILLION 747S THE CARRIER LAST YEAR SLOWED ITS PLANS FOR RECEIVING ITS FIRST 777S AND HAS SINCE ATTEMPTED TO RETREAT FROM THE DELIVERY SCHEDULE ALTHOUGH APPARENTLY WITHOUT SUCCESS UNITED WHICH POSTED A 1659 MILLION LOSS FOR THE FIRST NINE MONTHS OF 1992 SAID IN DECEMBER IT WILL SOON ENACT ITS SECOND MAJOR ROUND OF FLEETDELIVERY DELAYS AND CUTBACKS AFTER AN INITIAL REORDERING A YEAR AGO THAT INVOLVED 122 ORDERED PLANES HOWEVER SEVERAL FACTORS SUGGEST UNITED WILL BE HARD PRESSED TO SWAP BOEING ORDERS FOR AIRBUS ORDERS UNITED HAS SIGNED CONTRACTS REQUIRING IT TO TAKE DELIVERY OF THE 777S AND 747S AND THE AIRLINE IS AMONG SEVERAL BIG DOMESTIC CARRIERS EAGER TO WIN CLINTON ADMINISTRATION BACKING FOR THEIR POSITION IN ANOTHER USEUROPE TRADE CONFLICT THEIR OPPOSITION TO BRITISH AIRWAYS' PROPOSED INVESTMENT IN USAIR BRETT PULLEY CONTRIBUTED TO THIS ARTICLE 9301210082 930121 REVIEW & OUTLOOK EDITORIAL RESPONSIBILITY'S RETURN THE WATCHWORD OF BILL CLINTON'S INAUGURAL SPEECH WAS RESPONSIBILITY WELCOME BACK IT IS GOOD TO HEAR A DEMOCRATIC PRESIDENT TALKING ABOUT RESPONSIBILITY IT IS GOOD TO HEAR ANY PRESIDENT OR ANYONE IN A POSITION OF LEADERSHIP IN THIS COUNTRY TALKING ABOUT PERSONAL RESPONSIBILITY MR CLINTON IS TALKING ABOUT IT BECAUSE IN OUR RECENT HISTORY THERE HASN'T BEEN ENOUGH OF IT HERE ARE THE FOUR PASSAGES IN WHICH PRESIDENT CLINTON EXHORTED AMERICA TO REDISCOVER THIS USEFUL BUT SOMEWHAT FORGOTTEN VIRTUE TODAY A GENERATION RAISED IN THE SHADOW OF THE COLD WAR ASSUMES NEW RESPONSIBILITIES POSTERITY IS THE WORLD TO COME THE WORLD FOR WHOM WE HOLD OUR IDEALS AND TO WHOM WE BEAR SACRED RESPONSIBILITY WE MUST DO WHAT AMERICA DOES BEST OFFER MORE OPPORTUNITY TO ALL AND DEMAND RESPONSIBILITY FROM ALL IT IS TIME TO BREAK THE BAD HABIT OF EXPECTING SOMETHING FOR NOTHING FROM OUR GOVERNMENT OR FROM EACH OTHER LET US ALL TAKE MORE RESPONSIBILITY NOT ONLY FOR OURSELVES AND OUR FAMILIES BUT FOR OUR COMMUNITIES AND OUR COUNTRY MR CLINTON'S CALL TO RESPONSIBILITY HAS BOTH A CIVIC AND PERSONAL DIMENSION AND RUNS FROM THE NATION'S HIGHEST INSTITUTIONS TO ITS LOWEST RUNGS IT IS NO ACCIDENT THAT THE SPEECH'S TWO BIGGEST APPLAUSE LINES CARRIED CRITICISM OF WASHINGTON OFTEN A PLACE OF CALCULATION AND INTRIGUE WE SUSPECT THE CLINTON ADMINISTRATION IS GOING TO BE ONE OF HIGH ACTIVITY AND MUCH INTERNAL POLITICKING BUT IF ITS MEMBERS KEEP THE PRESIDENT'S NOTION OF PERSONAL AND PUBLIC RESPONSIBILITY BEFORE THEM THERE IS REASON TO HOPE THAT GENUINE GOOD WILL RESULT FROM THEIR WORK MR CLINTON ELABORATED SEVERAL OTHER THEMES WORTH REMEMBERING HE ACCURATELY IDENTIFIED THE CHANGING NATURE OF MODERN LIFE COMMUNICATIONS AND COMMERCE ARE GLOBAL INVESTMENT IS MOBILE TECHNOLOGY IS ALMOST MAGICAL AND AMBITION FOR A BETTER LIFE IS NOW UNIVERSAL TO SAY THE LEAST A FRIEND CALLED TO SAY THAT WHILE IN TEL AVIV YESTERDAY HE COULD WATCH MR CLINTON'S SPEECH ON TELEVISION CHANNELS FROM TURKEY EGYPT JORDAN CNN THE BBC AND STAR TV OUT OF HONG KONG DESCRIBING ALL THESE NEW FORCES AS CHANGE THE NEW PRESIDENT DEFTLY AND CORRECTLY IDENTIFIED THE UNITED STATES AS BOTH THE INEVITABLE LEADER OF THIS NEW ORDER AND A NATION THAT MUST COMPETE TO HOLD ITS PLACE IN THAT ORDER HE SAID THERE IS NO LONGER DIVISION BETWEEN WHAT IS FOREIGN AND WHAT IS DOMESTIC BEYOND THIS COUNTRY'S BORDERS THERE IS PROBABLY NO GREATER CONCERN THAN THAT THE NEW US LEADERSHIP WILL BEND BEFORE THE FORCES OF PROTECTIONISM WHICH WOULD BE AN IMPLICIT ADMISSION THAT AMERICA CAN'T LEAD AND WON'T COMPETE AGAIN WE HOPE THE CLINTON APPOINTEES KEEP HIS INAUGURAL VISION OF THE WORLD BEFORE THEM A FINAL THOUGHT MUCH IS BEING MADE OF THE FACT THAT WE ARE WITNESSING A CHANGING OF THE GENERATIONAL GUARD MUCH SHOULD BE MADE OF IT MR CLINTON WAS RIGHT TO THANK EARLIER GENERATIONS FOR DEFEATING THE DEPRESSION FASCISM AND COMMUNISM THE BABY BOOMERS SOME OF WHOM HAVE BEEN BORNE UP OR DRAGGED DOWN BY THIS NEW WORLD OF CHANGE NOW HAVE THEIR CHANCE IT IS APPROPRIATE TO WISH BILL CLINTON AND THE REST OF THEM THE BEST 9301210081 930121 GREAT WESTERN POSTS 973 MILLION LOSS FOR FOURTH PERIOD BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL GREAT WESTERN FINANCIAL CORP POSTED AN UNEXPECTEDLY LARGE 973 MILLION NET LOSS FOR THE FOURTH QUARTER AFTER TAKING A THIRD ROUND OF CHARGES ON COMMERCIAL PROPERTIES THAT IT FAILED TO UNLOAD DESPITE DIFFICULTIES DATING FROM LATE 1989 IN ADDITION HF AHMANSON INC REPORTED A 76 EARNINGS PLUNGE BUT THE NATION'S LARGEST THRIFT IS COPING WITH CREDIT PROBLEMS IN THE STILLDEPRESSED CALIFORNIA REAL ESTATE MARKET BETTER THAN NO 2 THRIFT GREAT WESTERN THE QUARTER'S RESULTS SAY MORE ABOUT EACH COMPANY'S MANAGEMENT STRATEGY THAN THE DIRECTION OF CALIFORNIA PROPERTY VALUES GREAT WESTERN CHATSWORTH CALIF SAID ITS LOSS RESULTED PRIMARILY FROM A 335 MILLION PROVISION TIED TO HOTELS OFFICES AND WAREHOUSES MOSTLY IN CALIFORNIA AND FLORIDA THE COMPANY TOOK 200 MILLION WRITEDOWNS AND RESERVES AGAINST MANY OF THESE PROPERTIES IN THE FOURTH QUARTER OF 1989 AND ANOTHER 129 MILLION IN RELATED CHARGES IN 1992'S THIRD QUARTER WE REALLY WANT TO GET RID OF THE STUFF A SPOKESMAN SAID NOTING THAT 50 DISCOUNTS ON THE HOLDINGS SHOULD AT LAST ATTRACT BUYERS EITHER THROUGH INDIVIDUAL OR BULK SALES ITS QUARTERLY PROVISION IS MORE THAN TRIPLE ITS 100 MILLION THIRDQUARTER CHARGE GREAT WESTERN'S RECORD IN COMMERCIAL REAL ESTATE LENDING BOTH IN TERMS OF DEFAULTS AND LOSS SEVERITY IS FAR WORSE THAN AHMANSON'S FOR EXAMPLE DEFAULTS ACCOUNT FOR 24 OF GREAT WESTERN'S COMMERCIAL PROPERTY PORTFOLIO COMPARED WITH 15 AT AHMANSON SAYS JONATHAN GRAY AN ANALYST AT SANFORD BERNSTEIN & CO MOREOVER GREAT WESTERN DIDN'T TIGHTEN ITS UNDERWRITING STANDARDS WHILE HOME VALUES PLUMMETED AS AHMANSON DID STARTING IN 1990 AT GREAT WESTERN MORTGAGES WITH A LOANTOVALUE RATIO EXCEEDING 80 REMAINS AT 25 OF LOANS OUTSTANDING WHILE AHMANSON'S HAS DROPPED FROM 26 IN 1989 TO A CURRENT 12 MR GRAY SAYS GREAT WESTERN'S QUARTERLY LOSS WAS EQUAL TO 80 CENTS A SHARE COMPARED WITH NET INCOME OF 715 MILLION OR 53 CENTS A SHARE A YEAR AGO FOR 1992 NET DECLINED 71 TO 85 MILLION OR 53 CENTS A SHARE FROM 298 MILLION OR 224 A SHARE AFTER THE EARNINGS RELEASE STANDARD & POOR'S CORP SAID IT WILL REVIEW FOR POSSIBLE DOWNGRADE 5 BILLION IN GREAT WESTERN DEBT AT AHMANSON FOURTHQUARTER NET INCOME WAS 155 MILLION OR 10 CENTS A SHARE VERSUS 64 MILLION OR 51 CENTS A SHARE A YEAR EARLIER FOR THE YEAR NET SLIPPED 17 TO 2041 MILLION OR 160 A SHARE FROM 2458 MILLION OR 206 A SHARE AHMANSON'S LOSS PROVISION AT 93 MILLION WAS HIGHER THAN ITS 74 MILLION RESERVE IN THE THIRD QUARTER MAINLY BECAUSE IT SOLD HUNDREDS MORE FORECLOSED SINGLEFAMILY HOMES IN A PROGRAM THAT ENLISTS LOAN PERSONNEL TO MARKET AND MAINTAIN THE PROPERTIES ANALYSTS HAD EXPECTED GREAT WESTERN TO EARN ABOUT 12 CENTS A SHARE ALTHOUGH THE COMPANY HAD IN RECENT WEEKS DECLINED TO COMMENT ON ITS QUARTERLY PERFORMANCE AHMANSON'S RESULTS WERE IN LINE WITH EXPECTATIONS IN NEW YORK STOCK EXCHANGE TRADING GREAT WESTERN'S STOCK CLOSED AT 1875 DOWN 25 CENTS AHMANSON'S STOCK CLOSED AT 2050 DOWN 50 CENTS 9301210080 930121 REVIEW & OUTLOOK EDITORIAL RUSSIAN REVERSAL THE NEWS OUT OF RUSSIA THESE DAYS TENDS TOWARD THE GLOOMY WE'RE INCLINED TO THINK THE GLOOM IS OVERSTATED SO IT'S ENCOURAGING WHEN ONE OF THE MORE DEPRESSING TURNS OF THE YEAR SUDDENLY BRIGHTENS RECALL THAT WHEN VIKTOR CHERNOMYRDIN A COMMUNISTERA INDUSTRIALIST WAS NAMED RUSSIAN PRIME MINISTER LAST MONTH NOBODY EXPECTED A FOE OF DIRIGISME SO NO ONE WAS SURPRISED WHEN HE BEGAN TRYING TO TURN ECONOMIC SHOCK THERAPY INTO WATER TORTURE WELL HE ALREADY IS BEING COUNTERMANDED ONE OF HIS FIRST ACTS WAS A NEW YEAR'S POLICY STATEMENT THAT DISMISSED THE REFORMS OF HIS PREDECESSOR YEGOR GAIDAR AS MERE IMPROVISATION HE INDICATED THAT HE FAVORED MORE STATE INTERVENTION TO PREVENT PRODUCTION DECLINES AND INDUSTRY CLOSURES THIS PLEDGE OF ALLEGIANCE TO REREGULATION WAS FOLLOWED BY A DECREE REINTRODUCING PRICE CONTROLS ENTERPRISES PRODUCING BASIC FOODSTUFFS MEDICINE AND A REAL CROWD PLEASER VODKA AMONG OTHER THINGS WOULD HAVE TO RESTRICT THEIR PROFIT MARGINS TO BETWEEN 10 AND 25 THE CURIOUS LOGIC WAS THAT IF PRICES WERE FREE PRODUCERS COULD OVERPRICE THEIR GOODS AND THEN PRODUCE LESS FOR THE SAME AMOUNT OF REVENUE INDUSTRIALIST ARKADI VOLSKY LEADER OF THE CIVIC UNION WAS PRESSURING THE GOVERNMENT TO DEVIATE FROM THE GAIDAR REFORM PROGRAM AS WELL BUT MR VOLSKY IS NOT PARTICULARLY INTERESTED IN HAVING A NEW GOSPLAN DICTATING TO HIS INDUSTRIALIST CONSTITUENCY WHICH MAY BE WHY MR CHERNOMYRDIN HAS SUDDENLY BEEN OVERRULED THIS WEEK DEPUTY PRIME MINISTER BORIS FYODOROV ANNOUNCED THAT THE REINTRODUCTION OF PRICE CONTROLS WAS A BUREAUCRATIC MISTAKE A PHRASE WE LIKE AND AFFIRMED THE GOVERNMENT'S COMMITMENT TO REFORM THE LAST THING RUSSIA NEEDS NOW ARE MORE COMMODITY SHORTAGES SUPPLY BOTTLENECKS AND LONG LINES THAT'S WHAT PRICE CONTROLS DELIVER THAT THEY WERE REPEALED SHOWS THAT RUSSIA'S REFORM PROCESS IS NOT AS VULNERABLE AS MANY THINK THE PRIME MINISTER MAY ALSO HAVE BEEN FORCED TO ASK HIMSELF EXACTLY HOW HE WAS GOING TO DO IT MUCH OF THE CONTROL BUREAUCRACY HAS BEEN DISMANTLED WHERE THERE IS NO OPEN MARKET THERE IS A WELLOILED BLACK MARKET MOREOVER LOCAL GOVERNMENTS ARE SELLING OFF SMALL SHOPS AND RESTAURANTS LAST WEEK 20 MEDIUM AND LARGESIZED RUSSIAN INDUSTRIES WERE PUT ON THE MARKET IN THE VOLGOGRAD DISTRICT AND OTHER DISTRICTS ARE EXPECTED TO ANNOUNCE PUBLIC OFFERINGS LATER THIS MONTH RUSSIANS CAN EXCHANGE THEIR GOVERNMENTISSUED VOUCHERS FOR SHARES IN ANY OF THE COMPANIES RUSSIA'S ECONOMIC PERFORMANCE TOWARD THE END OF LAST YEAR ALSO WAS SLIGHTLY MORE ENCOURAGING INSTEAD OF REPORTING IMPRESSIVE PRODUCTION FIGURES HEAVILY COMPOSED OF GOODS NOBODY WANTS THERE ARE SOME SIGNS THAT RUSSIA IS FINALLY BEGINNING TO BUILD AN ECONOMY THAT PRODUCES GOODS PEOPLE DO WANT THE ONLY WAY IT CAN CONTINUE TO DO THAT IS TO HAVE A MARKET PRICE SYSTEM THAT SIGNALS THOSE WANTS TO PRODUCERS UNLESS MR CHERNOMYRDIN'S NEW YEAR'S PRONOUNCEMENT WAS A CAREFULLY STAGED CHARADE TO TAKE OFF SOME OF THE HEAT FROM THE OLD BOLSHIES IN CONGRESS HE DOESN'T UNDERSTAND MARKET ECONOMICS BUT THE FACT THAT HE NOW HAS BEEN OVERRULED SUGGESTS THAT SOMEONE ELSE WITH POWER MOST LIKELY BORIS YELTSIN DOES THAT IS GOOD NEWS FOR THE PEOPLE OF RUSSIA 9301210079 930120 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9301210078 930121 REVIEW & OUTLOOK EDITORIAL ASIDES THE COMING PC CRACKUP OLYMPIA WASH AP GOVERNOR MIKE LOWRY SAYS HE WON'T CALL HIS TOP AIDE CHIEF OF STAFF BECAUSE SOME INDIANS DISLIKE THE TITLE ON TUESDAY A DAY BEFORE TAKING THE OATH OF OFFICE AS WASHINGTON'S 20TH GOVERNOR LOWRY SAID HARRY THOMAS WOULD CARRY THE TITLE STAFF DIRECTOR LOWRY A DEMOCRAT SAID CHIEF HAS LONG BEEN USED IN GOVERNMENT CIRCLES HE EVEN NOTED THAT THE PRESIDENT IS ALSO KNOWN AS THE COMMANDER IN CHIEF BUT HE SAID OBJECTIONS WERE RAISED BY A MEMBER OF THE SWINOMISH TRIBE AS WELL AS SOME MEMBERS OF HIS TRANSITION TEAM AND THEY SAID THEIR VIEWS WERE SHARED IN MANY TRIBAL COMMUNITIES MY THOUGHT WAS THAT IF THEY FELT IT WAS INSENSITIVE WE OUGHT TO RECOGNIZE THAT LOWRY SAID 9301210077 930121 MARKETING & MEDIA TCI'S CHAIRMAN IS SAID TO CONSIDER SELLING HIS 19 LIBERTY MEDIA STAKE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOB MAGNESS CHAIRMAN AND FOUNDER OF CABLETELEVISION GIANT TELECOMMUNICATIONS INC IS SAID TO BE WEIGHING A SALE OF HIS 19 STAKE IN TCI SPINOFF LIBERTY MEDIA CORP AT CURRENT PRICES SUCH A SALE WOULD PRODUCE A PROFIT IN EXCESS OF 130 MILLION ACCORDING TO WALL STREET INVESTORS FAMILIAR WITH MR MAGNESS'S DELIBERATIONS THE INVESTORS SAID LIBERTY IS EXPECTED TO EITHER BUY MR MAGNESS'S STAKE FOR CASH OR SWAP TCI SHARES IT ALREADY OWNS A LIBERTY SPOKESMAN DENIED THAT MR MAGNESS INTENDS TO SELL THE STAKE SAYING HE HAS NO PLANS TO DO ANYTHING LIKE THIS MR MAGNESS COULDN'T BE REACHED AND TCI DECLINED TO COMMENT MR MAGNESS IS SAID TO BE CONTEMPLATING THE SALE IN PART TO BLUNT CONTINUING CONCERN IN WASHINGTON THAT LIBERTY AND TELECOMMUNICATIONS ARE TOO CLOSELY LINKED AND TOGETHER CONTROL TOO LARGE A STAKE IN CABLE SYSTEMS AND PROGRAMMING MR MAGNESS IS LIBERTY'S SECONDLARGEST INVESTOR AND TCI'S BIGGEST SHAREHOLDER TCI IS THE WORLD'S LARGEST CABLE COMPANY WITH SYSTEMS SERVING ALMOST 10 MILLION SUBSCRIBERS LIBERTY MEDIA A COLLECTION OF CABLE PROGRAM INTERESTS AND CABLE SYSTEMS THAT WAS SPUN OFF FROM TCI TWO YEARS AGO IS A GROWING FORCE IN CABLE TV PROGRAMMING WITH STAKES IN NUMEROUS REGIONAL SPORTS CHANNELS A 50 INTEREST IN AMERICAN MOVIE CLASSICS 33 OF COURTTV 28 OF HOME SHOPPING CHANNEL QVC AND 18 OF BLACK ENTERTAINMENT TELEVISION THE NEW CABLE LAW THAT BECOMES EFFECTIVE LATER THIS YEAR IS INTENDED IN PART TO CURB THE MARKET POWER OF VERTICALLY INTEGRATED CABLE ENTERPRISES THAT OWN CABLE SYSTEMS AND CABLE TV SHOWS BUT TCI AND LIBERTY HAVE MAINTAINED SUBSTANTIAL BUSINESS TIES AS LIBERTY'S LARGEST CUSTOMER TCI ACCOUNTED FOR 30 OF LIBERTY'S SALES OF 110 MILLION IN THE FIRST NINE MONTHS OF 1992 YET EVEN FOLLOWING ANY DIVESTITURE BY MR MAGNESS THE TWO COMPANIES' CLOSE ASSOCIATION WOULD CONTINUE THROUGH TCI CHIEF EXECUTIVE JOHN MALONE ONE OF THE CABLE INDUSTRY'S MOST INFLUENTIAL FIGURES MR MALONE IS ALSO LIBERTY'S CHAIRMAN AND CONTROLLING SHAREHOLDER THE EXECUTIVE OWNS A 51 VOTING STAKE IN LIBERTY ALTHOUGH PART OF THE HOLDING IS SUBJECT TO RESTRICTIONS MR MALONE HAS MOVED TO SEPARATE HIS TCI AND LIBERTY OWNERSHIP POSITIONS DURING 1992 FOR EXAMPLE MR MALONE DIVESTED ALMOST ALL OF HIS TCI SHARES HE HAD SWAPPED MOST OF HIS TCI HOLDINGS FOR HIS LIBERTY STAKE AT THE TIME OF THE SPINOFF WHICH WAS EFFECTED THROUGH A COMPLEX RIGHTS OFFERING UNDER FEDERAL RULES MR MAGNESS IS DEEMED TO BE A CONTROLLING SHAREHOLDER OF BOTH COMPANIES ACCORDING TO ONE PERSON FAMILIAR WITH THE DIVESTITURE PLAN THE OWNERSHIP LINKAGE HAS STIRRED WORRIES AT THE TWO COMPANIES ABOUT THEIR ABILITY TO PURSUE CERTAIN TRANSACTIONS WITHOUT DRAWING THE SCRUTINY OF REGULATORS THIS PERSON SAID AT PRESENT FOR EXAMPLE THE JUSTICE DEPARTMENT HAS LAUNCHED A FORMAL INQUIRY INTO LIBERTY MEDIA'S AGREEMENT TO ACQUIRE CONTROL OF HOME SHOPPING NETWORK INC THE US'S LARGEST TELEVISION HOME SHOPPING CONCERN LIBERTY ALREADY OWNS A MAJOR STAKE IN QVC NETWORK INC THERE IS SPECULATION THAT THE INQUIRY INCLUDES SCRUTINY OF WHAT EFFECT THE TIES BETWEEN TCI AND LIBERTY WOULD HAVE ON COMPETITION IN THE HOME SHOPPING MARKET IF THAT MERGER TAKES PLACE 9301210076 930121 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ONE HOT TYPE OF COMPUTER SOFTWARE IS THE PERSONAL INFORMATION MANAGER OR PIM THESE PROGRAMS KEEP TRACK OF APPOINTMENTS ADDRESSES PHONE NUMBERS AND MORE THEY ARE A DIGITAL ALTERNATIVE TO PAPER DATE BOOKS ADDRESS BOOKS AND THE VENERABLE ROLODEX AND THEY COMPETE WITH POCKETSIZE ELECTRONIC ORGANIZERS SUCH AS SHARP'S WIZARD SERIES REVIEWED HERE LAST WEEK THERE ARE TWO PROBLEMS WITH EVALUATING PIMS FIRST SOFTWARE COMPANIES USE THE TERM LOOSELY IT CAN COVER A SIMPLE CALENDAR WITH LIMITED ABILITY TO HANDLE APPOINTMENTS INTENDED TO BE CALLED UP ONLY ONCE IN A WHILE OR IT CAN REFER TO A VAST MULTIFUNCTION SOFTWARE OCTOPUS THAT INCLUDES SUCH FEATURES AS SERIOUS WORD PROCESSING AND DATA COMMUNICATIONS AND IS MEANT TO BE ON YOUR SCREEN NEARLY ALL THE TIME THE OTHER DIFFICULTY IS THAT PURCHASE DECISIONS IN THIS CATEGORY OF SOFTWARE MORE THAN MOST OTHERS DEPEND HEAVILY ON PERSONAL WORK STYLES AND HABITS SO WHILE MILLIONS OF DIFFERENT PEOPLE CAN HAPPILY USE THE SAME SPREADSHEET WITH MINOR MODIFICATIONS NO SINGLE PIM WORKS FOR EVERYONE STILL I THINK ONE NEW PERSONAL INFORMATION MANAGER DESERVES SPECIAL ATTENTION BECAUSE IT IS CAREFULLY DESIGNED TO BALANCE A GOOD SELECTION OF FEATURES EASE OF USE AND THE FLEXIBILITY TO CUSTOMIZE THE WAY IT WORKS TO SUIT INDIVIDUAL TASTES IT IS A GOOD SOLUTION FOR THE LARGE GROUP OF COMPUTER USERS WHO NEED MORE THAN A RUDIMENTARY ONSCREEN DATE BOOK BUT LESS THAN A COMPLEX HEAVYDUTY PACKAGE THAT PROGRAM IS LOTUS ORGANIZER FROM LOTUS DEVELOPMENT THE SOFTWARE COMPANY MOST FAMOUS FOR THE 123 SPREADSHEET ORGANIZER WHICH SELLS FOR 99 AT DISCOUNT IS AVAILABLE FOR IBMCOMPATIBLE PCS USING MICROSOFT WINDOWS A VERSION FOR APPLE'S MACINTOSH COMPUTERS IS IN THE WORKS ANYONE FAMILIAR WITH A PAPER DATE BOOK OR ADDRESS BOOK CAN BE UP AND RUNNING QUICKLY ON ORGANIZER THAT'S BECAUSE IT LOOKS ON THE SCREEN MUCH LIKE SUCH PAPER COMPETITORS AS THE FILOFAX OR DAYTIMER DIARIES DOWN TO SIMULATED METAL RINGS HOLDING SIMULATED PAPER PAGES THE PAGES ARE DIVIDED INTO SECTIONS IDENTIFIED BY TABS LABELED CALENDAR ADDRESSES TO DO NOTEPAD PLANNER AND ANNIVERSARY WITHIN EACH SECTION TABS FURTHER IDENTIFY PAGES BY LETTERS OF THE ALPHABET OR YEAR AS APPROPRIATE CLICK ON A TAB WITH YOUR MOUSE AND THE BOOK OPENS INSTANTLY TO THAT SECTION BUT ORGANIZER IS A LOT SMARTER THAN A PAPER DATE BOOK THE SIMULATED BOOK IS SURROUNDED BY LITTLE ICONS PICTURES REPRESENTING DIFFERENT FUNCTIONS CLICKING ON A PICTURE OF A MAGNET WITH YOUR MOUSE LETS YOU GRAB AN APPOINTMENT ON ONE DATE IN YOUR CALENDAR AND MOVE IT TO ANOTHER DATE WITH ALL DETAILS INTACT CLICKING ON A PICTURE OF AN ANCHOR LETS YOU LINK ONE ENTRY TO ANOTHER SO THAT THEY ARE CONNECTED FOR EASY ACCESS FOR INSTANCE YOU MIGHT LINK A MEETING LISTED IN THE CALENDAR SECTION TO AN ADDRESS ENTRY FOR THE CHAIRMAN OF THE MEETING TO DIAL A PHONE NUMBER THROUGH YOUR MODEM YOU JUST POINT TO AN ADDRESS ENTRY WITH YOUR MOUSE AND DRAG THE ENTRY ONTO AN ICON BEARING A PICTURE OF A TELEPHONE TO PRINT AN ENTRY DRAG IT TO A PICTURE OF A PRINTER RECORDS CAN BE SORTED OR VIEWED IN DIFFERENT WAYS ON THE SCREEN BY CLICKING ON OTHER ICONS THERE AREN'T ANY COMPLICATED COMMANDS TO MEMORIZE ADDING ENTRIES IS ALSO A BREEZE YOU JUST CLICK ON ANY BLANK AREA IN THE APPROPRIATE SECTION AND A FORM POPS UP THAT YOU CAN FILL IN THE ANNIVERSARY SECTION CAN BE USED TO PERMANENTLY ENTER BIRTHDAYS HOLIDAYS AND THE LIKE INTO THE DATE BOOK THE NOTEPAD SECTION LETS USERS ENTER LONG DOCUMENTS INCLUDING TEXT AND GRAPHICS THAT CAN BE SUMMONED ANYTIME YOU CAN EVEN INSERT MATERIAL WRITTEN IN OTHER PROGRAMS FOR INSTANCE YOU MIGHT PLACE IN THE NOTEBOOK A PRODUCT PRICE LIST OR AN ORGANIZATION CHART DRAWN IN OTHER SOFTWARE ORGANIZER AUTOMATICALLY ADDS EACH NEW ENTRY IN THE NOTEPAD TO A TABLE OF CONTENTS THE PLANNER SECTION PROVIDES A GRID DISPLAY ON WHICH YOU CAN PLOT THE DURATION OF PROJECTS USING COLORED BARS PAGES IN THIS SECTION AND IN THE NOTEBOOK CAN UNFOLD ON THE SCREEN SO THEY ARE WIDER THAN USUAL TO SHOW MORE INFORMATION ORGANIZER CAN PRINT OUT ITS CONTENTS IN A VARIETY OF LAYOUTS INCLUDING THOSE MATCHING MANY STANDARD PAPER DATE BOOKS AND MAILING LABEL FORMATS IT CAN INCORPORATE ADDRESSES AND OTHER RECORDS ALREADY ON YOUR COMPUTER AS LONG AS THE DATA IS IN CERTAIN SPECIFIED FORMATS YOU CAN REARRANGE AND RENAME THE TABBED SECTIONS ELIMINATE SOME OF THEM AND COMBINE SECTIONS FROM MULTIPLE ORGANIZER NOTEBOOKS I ADDED TO MY OWN ORGANIZER FILE SOME NIFTY NOTEPAD MATERIAL LOTUS SHIPS WITH THE PRODUCT THAT CONTAINS MAPS AND INFORMATION ON COUNTRIES STATES AND UNITS OF MEASURE TO KEEP THE PROGRAM EASY TO USE ORGANIZER'S DESIGNERS LEFT OUT SOME FEATURES HARDCORE PIM USERS MAY MISS FOR INSTANCE THERE'S NO WAY TO VIEW APPOINTMENTS FOR MORE THAN TWO WEEKS AT ONE TIME ADDRESS ENTRIES CAN CONTAIN ONLY A COUPLE OF CUSTOMIZED FIELDS AND YOU CAN SORT ADDRESSES IN ONLY FOUR PRESET WAYS THE PHONEDIALING FUNCTION DOESN'T ALLOW FOR CREDITCARD NUMBERS OR OTHER COMPLICATED DIALING OPTIONS TASKS IN THE TODO SECTION MUST BE TIED TO DATES AND CAN'T APPEAR IN A SEPARATE LIST THAT CARRIES OVER UNTIL COMPLETION NEVERTHELESS ORGANIZER WILL FIT THE BILL FOR LOTS OF PEOPLE IT IS PRACTICAL CAPABLE SOFTWARE THAT PUTS AN EMPHASIS ON CLARITY AND EASE OF USE 9301210075 930121 MUTUAL FUNDS ONCE A BAND BOOKER YOUNG MANAGER MAKES FUND SING BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL BOSTON MICHAEL P DICARLO USED TO BE A ROCKANDROLL BOOKING AGENT LINING UP ENGAGEMENTS FOR THE ELECTRIC LIGHT ORCHESTRA AND THE STEVE MILLER BAND TODAY THE 36YEAROLD MANAGER OF JOHN HANCOCK SPECIAL EQUITIES FUND HAS A SIZZLING RECORD IN PICKING SMALL STOCKS WITH A TWOYEAR RETURN OF 141 THROUGH DEC 31 HE BUYS INITIAL STOCK OFFERINGS THAT LEAP IN PRICE HIS OPTIMISM SEEMS BOUNDLESS HE TALKS OF THE SCARCITY VALUE OF FASTGROWING SMALL STOCKS HE READILY CONCEDES THAT SMALLSTOCK PRICES MAY GET SO HIGH THAT NO ONE CAN RATIONALIZE THEM THAT KIND OF TALK MAKES SOME OF THE OLDER HANDS ON WALL STREET SHUDDER IN THE LATE STAGES OF MARKET BOOMS YOU TEND TO HAVE YOUNGER AND YOUNGER PLAYERS SAYS ROBERT FARRELL A SENIOR INVESTMENT ADVISER AT MERRILL LYNCH MANY YOUNG FUND MANAGERS HAVE NEVER ENDURED A SUSTAINED BEAR MARKET AND WHEN THEY HIT ONE HE SAYS THEY MAY EXACERBATE IT BY PANICKING AND DUMPING STOCKS WE MAY TEST THE METTLE OF THE YOUNGER MUTUAL FUND MANAGERS IN THE YEAR AHEAD HE'S RIGHT MR DICARLO SAYS THE LAST TIME WE WENT THROUGH A SIGNIFICANT BEAR MARKET IS 1981 ON THE OTHER HAND MR DICARLO SAYS HE CAN TAKE THE HEAT AND SAYS THAT 1990 WHEN HIS FUND LOST 87 WAS NO PIECE OF CAKE IT WAS THE CHINESE WATER TORTURE YEAR THE TWOYEAR SURGE IN SMALL STOCK PRICES HAS GIVEN A BIG LIFT TO MANY MUTUAL FUNDS BUT FEW HAVE HAD AS BREATHTAKING A RIDE AS MR DICARLO'S SMALLBUTGROWING 80 MILLION STOCK FUND SPECIAL EQUITIES INVESTS IN FASTGROWING BUT RISKY SMALL COMPANIES ITS RETURN FOR 1991 AND 1992 WAS MORE THAN TRIPLE THE TWOYEAR TOTAL RETURN OF 40 FOR THE STANDARD & POOR'S 500 INDEX AND NEARLY DOUBLE THE 73 RETURN FOR THE RUSSELL 2000 INDEX OF SMALL STOCKS ASIDE FROM THREE SECTOR FUNDS INVESTING ONLY IN FINANCIAL STOCKS SPECIAL EQUITIES HAD THE BEST RECORD OF ANY MUTUAL FUND FOR THE TWOYEAR SPAN ACCORDING TO DATA FROM LIPPER ANALYTICAL SERVICES WHEN HE'S NOT RUNNING SPECIAL EQUITIES MR DICARLO MANAGES A GLOBAL STOCK FUND HE ALSO OVERSEES THE OTHER STOCK FUND MANAGERS AT JOHN HANCOCK MUTUAL FUNDS A UNIT OF JOHN HANCOCK MUTUAL LIFE INSURANCE CO NOW HALF A MILLION DOLLARS A DAY IS FLOWING INTO SPECIAL EQUITIES DIRECTED THERE BY BROKERS WHO COLLECT COMMISSIONS OF AS MUCH AS 45 OF THE INITIAL INVESTMENT MR DICARLO IS PUTTING THE NEW CASH TO WORK AS FAST AS HE CAN LAST YEAR SOME OF IT WENT INTO INITIAL PUBLIC OFFERINGS APPAREL MAKER TOMMY HILFIGER CORP IS AT 25375 UP 69 FROM ITS 15 IPO PRICE BICYCLE HELMET MAKER BELL SPORTS CORP AT 24 IS UP 60 FROM ITS 15 IPO PRICE THESE STOCKS IN 1992 HELPED FUEL THE FUND'S 3041 TOTAL RETURN OR SHAREPRICE GAINS PLUS DIVIDENDS SOME MARKET PROGNOSTICATORS EXPRESS CONCERN OVER THE LOFTY PRICES ACCORDED THE STOCKS OF SOME SMALL COMPANIES INCLUDING IPOS MR DICARLO SAYS THAT HE HAS CUT BACK ON BUYING IPOS BUT HE NOTES THAT THE AVERAGE CASH LEVEL AMONG AGGRESSIVE GROWTH FUNDS IN NOVEMBER THE LATEST DATA AVAILABLE WAS 122 MUCH HIGHER THAN THE 5 LEVEL AT WHICH MANY FUNDS CONSIDER THEMSELVES FULLY INVESTED THIS SUGGESTS TO HIM THAT THERE IS STILL PLENTY OF BUYING POWER TO PUSH SMALLSTOCK PRICES HIGHER I MAINTAIN THAT WE'RE IN THE BOTTOM OF THE SECOND OR THE BOTTOM OF THE THIRD INNING OF THE SMALL STOCK RALLY MR DICARLO SAYS IF WE ARE IN A MUNDANE STAGNANT ECONOMY YOU'RE GOING TO CONTINUE TO SEE A HUGE PREMIUM PLACED ON COMPANIES THAT CAN GROW FOR INSTANCE HE SAYS THAT ONE OF HIS BIG HOLDINGS CISCO SYSTEMS INC A COMPUTER NETWORK VENDOR THAT SELLS FOR 8875 OR 55 TIMES PRIOR 12MONTH EARNINGS PER SHARE IS NOT UNREASONABLE IN PRICE SINCE IT'S GROWING FAST IN COMPARISON THE MEDIAN PROFITABLE NEW YORK STOCK EXCHANGE COMPANY SELLS FOR 19 TIMES ITS PERSHARE EARNINGS ACCORDING TO FACTSET DATA SYSTEMS INC IN GREENWICH CONN MR DICARLO IS QUICK TO SAY THAT SPECIAL EQUITIES IS NOT FOR THE FAINT OF HEART WITH ITS FOCUS ON PRICEY STOCKS IT SUFFERS OCCASIONAL STEEP DECLINES FOR INSTANCE THE FUND LOST 156 IN VALUE FROM MARCH THROUGH JUNE 1992 BUT MR DICARLO'S FUND BOUNCED BACK UNLIKE FUNDS INVESTING IN BIOTECHNOLOGY AND HEALTH STOCKS WHICH LOST MONEY IN 1992 WHEN HE TOOK OVER SPECIAL EQUITIES IN 1988 THE FUND HAD RACKED UP NOTHING BUT LOSSES IN ITS FIRST TWO YEARS MR DICARLO TURNED THE FUND AROUND OUTPERFORMING THE AVERAGE SMALL STOCK FUND IN EACH OF THE PAST FIVE YEARS FOR A FIVEYEAR ANNUAL RETURN OF 2772 MR DICARLO LOOKS FOR COMPANIES WHOSE MARKET VALUE IS BETWEEN 100 MILLION AND 750 MILLION THESE ARE SMALL OUTFITS COMPARED WITH THOSE IN THE S&P 500 HE LOOKS FOR COMPANIES WHERE EARNINGS AND REVENUE ARE EXPECTED TO GROW 25 ANNUALLY FOR AT LEAST TWO YEARS HE WANTS THEM TO BE SELFFINANCING WHICH MEANS THAT THEY HAVE A HIGH RETURN ON SHAREHOLDERS' EQUITY I WOULDN'T KNOW A DIVIDEND IF IT SLAPPED ME IN THE FACE HE SAYS MR DICARLO ALSO WANTS HIS COMPANIES TO HAVE HIGH NET PROFIT MARGINS WHICH SUGGESTS THEY HAVE CONTROL OVER THEIR PRICING MANY OF THESE COMPANIES ARE CREATING THE INDUSTRY IN WHICH THEY EXIST HE SAYS HE CITES OFFICE DEPOT INC AND STAPLES INC TWO OF HIS HOLDINGS FIVE YEARS AGO THE OFFICESUPPLY SUPERSTORE CONCEPT DIDN'T EXIST FINALLY HE LOOKS FOR MANAGEMENT THAT'S FOCUSED ON ENHANCING SHAREHOLDER VALUE IT HELPS IF THE MANAGERS HAVE A LOT OF THEIR NET WORTH TIED UP IN THE STOCK MR DICARLO'S PICKS ARE CONCENTRATED IN WHAT HE CALLS CONSUMER CYCLICALS AND IN SOFTWARE COMPANIES HIS BIGGEST HOLDING NOW IS SUN TELEVISION & APPLIANCE WHICH HE HAS OWNED SINCE IT WENT PUBLIC IN 1991 THE 31STORE OHIOBASED CONSUMER ELECTRONICS CHAIN REMINDS HIM OF WALMART STORES HE SAYS BECAUSE THE STORES ARE LOCATED IN SMALL MARKETS THAT THEY DOMINATE AT A PRICE OF 35875 THE STOCK SELLS FOR 29 TIMES TRAILING 12MONTH EARNINGS AND MR DICARLO EXPECTS EARNINGS TO GROW BY 28 IN THE NEXT YEAR ONE RISK IN SMALL STOCKS IS THAT SMALL LOSSES CAN TURN INTO BIG LOSSES IN A VERY SHORT TIME MR DICARLO SAYS HE SELLS A STOCK IF IT HAS FALLEN 12 BELOW WHAT HE PAID FOR IT MR DICARLO THE SON OF IMMIGRANTS GREW UP IN A BLUECOLLAR DISTRICT OF BOSTON HE SPEAKS WITH A STRONG BOSTON ACCENT HE ATTENDED BOSTON LATIN SCHOOL A RIGOROUS PUBLIC SCHOOL WHOSE 1635 FOUNDING PREDATES THAT OF HARVARD UNIVERSITY AT 16 HE SAYS THAT HE TURNED AN INTEREST IN ROCKANDROLL INTO A BUSINESS FOUNDING A BOOKING AGENCY THAT HE LATER SOLD HE SAYS THAT HE BOOKED THE BAND AEROSMITH THEN AN UNKNOWN LOCAL GROUP AT A HIGH SCHOOL FOR 500 HE LATER WORKED AS AN AGENT FOR PRETTY POLLY PRODUCTIONS LINING UP CONCERTS FOR PERFORMERS HOWARD CUSACK PRESIDENT OF PRETTY POLLY SAYS THAT MR DICARLO HAD A GIFT FOR PREDICTING MUSICAL TRENDS AND TALENT AS A SALESMAN HE COULD TALK A BIRD OUT OF A TREE WITH MONEY FROM HIS ROCKANDROLL BOOKINGS MR DICARLO STARTED INVESTING WHICH STEERED HIM INTO THE INVESTMENT DEPARTMENT AT JOHN HANCOCK AFTER HE GRADUATED FROM THE UNIVERSITY OF MASSACHUSETTS HE EVENTUALLY BECAME A RESEARCH ANALYST AND THEN A FUND MANAGER MR DICARLO THINKS THE SMALL STOCK RALLY WILL CONTINUE BECAUSE HE EXPECTS THE ECONOMY TO REMAIN ANEMIC IN THAT CASE HE SAYS GROWTH REALLY BECOMES THE ONLY GAME IN TOWN 9301210074 930121 ADVERTISING HOT SONGS ARE WOOING YOUNGER EARS BY KEVIN GOLDMAN WHEN KRAFT GENERAL FOODS WANTED TO THAW OUT ITS LINE OF BUDGET GOURMET FROZEN ENTREES WITH ADS THAT WOULD APPEAL TO YOUNG PEOPLE IT SHUNNED A HOKEY JINGLE AND TAPPED THE POPULAR HIPHOP DANCE GROUP C&C MUSIC FACTORY AND THUS THE GROUP'S CHART TOPPER THINGS THAT MAKE YOU GO HMMMM BECAME THINGS THAT MAKE YOU GO MMMMMMM CORNY PERHAPS BUT KRAFT A UNIT OF PHILIP MORRIS WANTED TO CONTEMPORIZE THE BRAND THE SONG MAKES THE PRODUCT MORE RELEVANT AND BRINGS IT TO TODAY'S IMAGE A KRAFT SPOKESWOMAN SAYS KRAFT IS PART OF A RISING CHORUS OF ADVERTISERS CULLING THE RECENT RECORD CHARTS FOR SONGS TO BE INCLUDED IN COMMERCIALS PEPSICO REVLON GROUP AND VOLKSWAGEN'S US UNIT AMONG OTHERS WANT THEIR PRODUCTS TO BE PERCEIVED AS HIP AND AU COURANT AD EXECUTIVES WANT COMMERCIALS THAT IMMEDIATELY CONJURE UP A FEELING OF FAMILIARITY AMONG CONSUMERS THE FASTEST WAY TO ACQUIRE SUCH INTANGIBLES MARKETERS FIGURE IS TO USE A HOT SONG AS THE FOUNDATION FOR AN AD CAMPAIGN ADVERTISERS IN THE '80S USED LOTS OF SONGS FROM THE '60S TO CAPITALIZE ON NOSTALGIA AMONG BABY BOOMERS USING VERY RECENT HITS IS A NEW PHENOMENON AND SEEMS AIMED AT PEOPLE IN THEIR 20S AND TEENS THE HITS JUST KEEP ON COMING PEPSICO AND ITS AD AGENCY OMNICOM GROUP'S BBDO PICKED RIGHT NOW BY VAN HALEN LAST YEAR'S NO 1 ROCK VIDEO ON MTV AS THE SIGNATURE TUNE FOR THE NEW CRYSTAL PEPSI THE SONG IS ABOUT THE STATE OF THE WORLD RIGHT NOW AND CRYSTAL PEPSI WILL CHANGE THE WAY THE WORLD LOOKS AT SOFT DRINKS MAINTAINS TED SANN VICE CHAIRMAN AND EXECUTIVE CREATIVE DIRECTOR OF BBDO'S NEW YORK OFFICE THE SONG IS A PERFECT FIT BUT THIS OUTPOURING OF PRESENT POP HAS ITS DOWNSIDE ENDURING HITS LIKE THOSE FROM THE BEACH BOYS MIGHT STICK IN THE CONSUMER MIND FOR TWO DECADES BUT MANY OF TODAY'S FLEETING FAVORITES ARE MORE LIKELY TO DISAPPEAR AFTER A YEAR OR TWO THEY MAY NOT COME CLOSE TO THE RELENTLESS AND HIGHRECALL JINGLES THAT HAVE IRRITATED OR DELIGHTED TV VIEWERS FOR YEARS SUCH AS THE OLD PLOPPLOP FIZZFIZZ FOR ALKASELTZER OR THE CATCHY TUNES FOR PAST COKE AND PEPSI CAMPAIGNS IN ADDITION THE TREND TOWARD TRENDINESS GETS EXPENSIVE FOR A NEW JINGLE A COMPANY TYPICALLY PAYS ONLY 15000 TO 25000 AND IT OWNS THE RIGHTS TO THAT LITTLE DITTY FOREVER TO SNARE A BREAKOUT ROCK SONG HOWEVER AN ADVERTISER MUST PAY THROUGH THE NOSE 75000 TO AS MUCH AS 300000 AND THAT TYPICALLY LETS THE SPONSOR USE THE TUNE FOR ONLY ONE YEAR AND COVERS ONLY THE COPYRIGHT USING THE BAND ITSELF TO PERFORM ITS HIT RELEASE WILL COST EVEN MORE EVEN JINGLE WRITERS HOWEVER UNDERSTAND ADVERTISERS' NEW FOCUS ON BILLBOARD'S LATEST MANY COMMERCIALS NOW MUST JOG A VIEWER'S RECALL IN ONLY SECONDS ESPECIALLY GIVEN THE ABUNDANCE OF 15SECOND SPOTS SELECTING EXISTING SONGS IS MORE POPULAR BECAUSE YOU'VE ALREADY BYPASSED CRUCIAL SECONDS NECESSARY TO FAMILIARIZE YOURSELF WITH A NEW SONG EXPLAINS TOM GRIFFITH WHO HAS WRITTEN ORIGINAL JINGLES FOR PHILIP MORRIS'S MILLER BREWING CAMPBELL SOUP AND OTHERS PLUS PEOPLE HAVE GOOD FEELINGS ABOUT CURRENT HITS AND THE ADVERTISER WOULD LIKE THIS POSITIVE ASSOCIATION BROUGHT TO THEIR PRODUCT THERE USED TO BE AN UNWRITTEN CODE THAT NO MUSICIAN WOULD SELL OUT COMMERCIALLY BEFORE HIS TIME THE BEACH BOYS FOR INSTANCE WAITED UNTIL ITS 1960S HIT GOOD VIBRATIONS WAS A MOLDY OLDIE BEFORE SELLING IT TO CADBURY SCHWEPPES FOR ITS SUNKIST SOFT DRINK STEPPENWOLF'S 1960S CLASSIC BORN TO BE WILD WAS USED IN ADS FOR FORD MOTOR'S COUGAR CAR LINE ALMOST 20 YEARS AFTER IT WAS A HIT EVEN OLD BLUE EYES CROONER FRANK SINATRA WAITED DECADES BEFORE ALLOWING STRANGERS IN THE NIGHT TO BE USED IN A LIGHTHEARTED AD FOR TIMEX WATCHES BUT SONGS DON'T HAVE THE SHELF LIFE THEY USED TO SONGS FROM THE 1950S AND 1960S ARE STILL POPULAR FOR INSTANCE KEPT ALIVE THROUGH BABYBOOMER MEMORIES AND OLDIES RADIO STATIONS BUT A LOT OF CHART TOPPERS THESE DAYS ARTISTS AND AD AGENCY EXECUTIVES SAY SIMPLY DON'T HAVE THE LEGS AND WON'T TURN INTO SOLID GOLD SAYS JAKE HOLMES CHAIRMAN OF 4/4 PRODUCTIONS AND WRITER OF COMMERCIAL JINGLES FOR SUCH COMPANIES AS GILLETTE AND EASTMAN KODAK RECORDS ARE TURNING OVER AND FALLING OFF THE CHARTS AT A FASTER PACE THAN EVEN 10 YEARS AGO MANY MUSICIANS JUST WANT TO CASH IN NOW AND NOT TAKE A CHANCE THAT THEIR SONGS WILL BE FORGOTTEN AND LOSE THEIR COMMERCIAL APPEAL BY SELLING OUT TO MADISON AVENUE MOREOVER MUSICIANS SOMETIMES GET A BOOST IN THE SALES OF THEIR ORIGINAL RELEASE VOLKSWAGEN TURNED TO AN UNLIKELY SOURCE FOR A TELEVISION COMMERCIAL FOR ITS PASSAT CARS ITS AD AGENCY OMNICOM'S DDB NEEDHAM GRABBED A SONG FROM LAST YEAR'S PATRIOT GAMES ESPIONAGE THRILLER FROM PARAMOUNT COMMUNICATIONS TITLED HARRY'S GAME PERFORMED BY THE NEW AGE GROUP CLANNAD ONE OF THE CREATIVE PEOPLE AT THE AD AGENCY SAW THE MOVIE AND BOUGHT THE SOUNDTRACK SAYS GREG STEIN VOLKSWAGEN'S US NATIONAL ADVERTISING MANAGER WE WERE LOOKING FOR SOMETHING WITH A LIGHT EUROPEAN FEEL AT ONCE VOLKSWAGEN DEALERS BEGAN TO RECEIVE CALLS ASKING ABOUT THE IRISH GROUP ALSO RECORD STORES BEGAN RECEIVING INQUIRIES ABOUT THE VOLKSWAGEN MUSIC IN AN ATTEMPT TO CAPITALIZE ON THE SUDDEN UNEXPECTED POPULARITY OF THE SONG TIME WARNER'S ATLANTIC RECORDING GROUP IS IN DISCUSSIONS WITH VOLKSWAGEN PERHAPS A CLANNAD COMPACT DISK WILL BE INCLUDED IN THE SALE OF A PASSAT A TRIP TO THE LOCAL RECORD STORE HOWEVER WOULD BE CHEAPER OTHER EXAMPLES OF COMMERCIALS SPARKING RENEWED INTEREST IN A POPULAR SONG ABOUND COSMETICS MAKER REVLON INCESSANTLY USED THE DANCE SONG MOVE THIS BY TECHNOTRONIC PERHAPS BETTER KNOWN BY ITS HOOK SHAKE YOUR BODY THE SONG WAS POPULAR IN DANCE CLUBS SEVERAL YEARS AGO AFTER REVLON'S INHOUSE AD AGENCY SELECTED IT AND DRILLED IT INTO THE MINDS OF CONSUMERS IT RECEIVED A SECOND LIFE ON RADIO WE KEPT GETTING REQUESTS TO PLAY THE SONG FROM THE REVLON COMMERCIAL SAYS FRANKIE BLUE MUSIC DIRECTOR AT WHTZFM A NEW YORK RADIO STATION AND LISTERINE'S USE OF THE DANCE HIT FROM A FEW YEARS AGO BALTIMORA'S TARZAN BOY HAS THE GROUP THINKING OF RERELEASING THE RECORD SAYS A SPOKESWOMAN FOR LISTERINE'S AD AGENCY THE J WALTER THOMPSON UNIT OF WPP GROUP IN THAT INSTANCE BALTIMORA ACTUALLY SINGS THE SONG FOR THE AD RATHER THAN A STUDIO BAND PERFORMING A KNOCKOFF SOMETIMES GROUPS WANT TO SELL THE SONG BUT NOT NECESSARILY THEMSELVES THERE'S USUALLY NO PROBLEM WITH SOME SLEIGHT OF VOICE BUT AD AGENCIES HAVE BEEN KNOWN TO RUN AFOUL OF THE COPYRIGHT LAW IF THE SUBSTITUTE CROONER WHO USUALLY COMES CHEAP COMES TOO CLOSE TO SOUNDING LIKE THE REAL THING THIS WEEK THE SUPREME COURT LET STAND WITHOUT COMMENT A 25 MILLION AWARD TO BLUES SINGER TOM WAITS FOR ADS FROM PEPSICO'S FRITOLAY UNIT IN ADS FOR THE COMPANY'S DORITOS BRAND A SINGER COPIED MR WAITS'S TRADEMARK THROATY DELIVERY ADVISES NICK DIMINNO PRESIDENT OF 4/4 PRODUCTIONS IF YOU'RE GOING TO SPEND MONEY ON THE SONG AND THE LYRICS DON'T NEED TO BE CHANGED AT ALL SPEND THE EXTRA MONEY FOR THE ACTUAL ARTIST OF COURSE MR DIMINNO WHOSE COMPANY COMPOSES JINGLES AND THEN PRODUCES THE SONG WISHES EVERY PRODUCT WOULD IGNORE THE ROCK CHARTS IN FAVOR OF ITS OWN PARTICULAR TUNE HE HAPPILY NOTES THAT SUCH BRANDS AS DIET COKE KENTUCKY FRIED CHICKEN GILLETTE AND WEIGHT WATCHERS ALL HAVE NEW SPOTS REPLETE WITH CATCHY JINGLES OF THEIR OWN SOME PEOPLE THINK JINGLES ARE UNHIP HE SAYS DEFENSIVELY SO THEY RELY ON RECORDS WELL JINGLES AREN'T DEAD EXECUTIVES ROBERT E KENNEDY PRESIDENT AND CHIEF OPERATING OFFICER OF SAATCHI & SAATCHI ADVERTISING WORLDWIDE WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE AGENCY'S NORTH AMERICAN OPERATIONS HE SUCCEEDS STUART B UPSON IN THE ROLE OF NORTH AMERICAN CHAIRMAN MR KENNEDY AGE 50 WHO WAS PROMOTED FROM CHIEF FINANCIAL OFFICER TO PRESIDENT LAST YEAR SAID HIS MISSION WAS TO RESTORE THE GROWTH AND PRODUCTIVITY IN OUR NORTH AMERICAN OPERATIONS THE MOVE PUTS THE SAATCHI AGENCY'S NORTH AMERICAN OPERATIONS UNDER THE CONTROL OF AN EXECUTIVE STEEPED IN THE FINANCIAL SIDE OF THE BUSINESS BUT MR KENNEDY OBJECTS TO BEING TAGGED A FINANCIAL MAN I'VE BEEN TRYING TO SHED THAT IMAGE FOR SOME TIME HE SAYS I CONSIDER MYSELF A BOTTOMLINEORIENTED BUSINESSMAN MR UPSON COULDN'T BE REACHED FOR COMMENT MR KENNEDY SAYS MR UPSON WOULD RETAIN AN ACTIVE ROLE ON THE AGENCY'S WORLDWIDE ADVISORY BOARD MR UPSON WAS THE HEAD OF ONE OF THE AGENCIES THAT PARENT COMPANY SAATCHI & SAATCHI MERGED IN THE LATE 1980S TO FORM THE PRESENTDAY SAATCHI AGENCY AND HAS CLOSE TIES TO ITS BIG TOYOTA ACCOUNT HERMAN'S HERMAN'S SPORTING GOODS INC CARTERET NJ NARROWED ITS AGENCY SEARCH TO TWO NEW YORK AGENCIES YOUNG & RUBICAM AND SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES BILLINGS ARE 25 TO 30 MILLION ACCORDING TO THE COMPANY'S SENIOR VICE PRESIDENT STUART KESSLER A DECISION IS EXPECTED IN MIDFEBRUARY REVIEW REEBOK INTERNATIONAL STOUGHTON MASS SAYS IT HAS BEGUN A SEARCH FOR AN AGENCY TO HANDLE ITS CASUALSHOE DIVISION INCLUDING THE BOKS BRAND BILLINGS COULDN'T BE DETERMINED STEPHEN FIREMAN DIVISION PRESIDENT SAYS A LIST OF THREE TO FIVE FINALISTS WOULD BE NAMED MONDAY INCUMBENT AGENCY TOTH DESIGN CARLISLE MASS IS PARTICIPATING IN THE REVIEW MORE ADVERTISERS ARE TURNING TO CURRENT HITS INSTEAD OF OLDIES AND HOKEY JINGLES TO SELL THEIR GOODS MATCH THE SONG WITH THE SPONSOR 9301210073 930121 LAW LEGAL BEAT FDA APPROVAL SHIELDS FIRMS IN INJURY SUITS BY EDWARD FELSENTHAL AND LEE BERTON STAFF REPORTERS OF THE WALL STREET JOURNAL A US APPEALS COURT RULED THAT REGULATORY APPROVAL OF SOME MEDICAL DEVICES LARGELY SHIELDS THE PRODUCTS' MAKERS FROM LAWSUITS SEEKING DAMAGES FOR INJURIES TO USERS THE FIRST US CIRCUIT COURT OF APPEALS IN BOSTON SAID APPROVAL OF THE DEVICES BY THE FOOD AND DRUG ADMINISTRATION BARS MORE AGGRESSIVE STATE REGULATION OR LAWSUITS BASED ON STATE LAW FOR CLAIMS SUCH AS NEGLIGENCE BREACH OF WARRANTY AND FRAUD THIS CASE IS PROBABLY THE SINGLE MOST IMPORTANT CASE TO THE MEDICALDEVICE INDUSTRY IN AMERICAN HISTORY SAID PETER HUTT A WASHINGTON LAWYER AND FORMER GENERAL COUNSEL OF THE FDA MR HUTT'S LAW FIRM COVINGTON & BURLING REPRESENTS THE HEALTH INDUSTRY MANUFACTURERS ASSOCIATION WHICH FILED A FRIENDOFTHECOURT BRIEF IN THE CASE MR HUTT SAID THE DECISION GIVES MANUFACTURERS A SINGLE NATIONAL CONTROL SYSTEM FOR OUR MOST IMPORTANT LIFESAVING PHARMACEUTICALTYPE PRODUCTS ALTHOUGH THE CASE SPECIFICALLY APPLIES TO ONLY ONE DEVICE AND BECOMES LAW ONLY IN THE FOURSTATE REGION COVERED BY THE BOSTON COURT LAWYERS SAID OTHER COURTS MAY CHOOSE TO ADOPT THE COURT'S REASONING IN CASES INVOLVING AN ARRAY OF PRODUCTS LIKE HEART VALVES FOR EXAMPLE IF SO THE DECISION WOULD SHARPLY CURTAIL SUITS BY PLAINTIFFS WHO ALLEGE THAT DEVICES THEY USED WERE NEGLIGENTLY DESIGNED OR THAT THE MANUFACTURER FAILED TO ADEQUATELY WARN ABOUT SIDEEFFECTS AND OTHER HEALTH RISKS THE LAWYERS SAID THE DECISION DOESN'T APPLY TO DRUGS WHICH ARE REGULATED BY A DIFFERENT SET OF FEDERAL LAWS IN THE FIRST CIRCUIT CASE THE PLAINTIFF JANE KING SUED COLLAGEN CORP OF PALO ALTO CALIF ALLEGING SHE DEVELOPED AN AUTOIMMUNE DISEASE AFTER USING ZYDERM A COLLAGEN COSMETIC DEVICE THAT IS INJECTED UNDER THE SKIN TO CORRECT WRINKLES AND SKIN DEFORMITIES IN HER LAWSUIT MS KING MADE A VARIETY OF ALLEGATIONS INCLUDING CLAIMS THAT ZYDERM WHICH IS STILL ON THE MARKET WAS NEGLIGENTLY DESIGNED AND MANUFACTURED THAT IT IS UNREASONABLY DANGEROUS TO USERS AND THAT ITS PACKAGE WASN'T ADEQUATELY LABELED TO WARN USERS OF THE DEVICE'S RISKS BUT THE APPEALS COURT THREW OUT THOSE CLAIMS SAYING THEY WERE PRECLUDED BY THE FDA'S INITIAL APPROVAL OF THE PRODUCT IN 1981 AND BY THE AGENCY'S EXTENSIVE REGULATION OF ZYDERM THE APPROVAL PROCESS THE COURT SAID IS DESIGNED TO PROVIDE A REASONABLE ASSURANCE OF SAFETY AND EFFECTIVENESS' FOR MEDICAL DEVICES WHICH ARE TOO DANGEROUS OR UNKNOWN TO PERMIT LESS REGULATION MS KING WILL APPEAL THE DECISION TO THE US SUPREME COURT SAID SUSAN ALLINGER AN ATTORNEY IN HOUSTON WHO REPRESENTS MS KING OTHER LOWER COURTS HAVE PRECLUDED STATELAW CLAIMS AGAINST MANUFACTURERS OF MEDICAL DEVICES BUT THE FIRST CIRCUIT'S DECISION IS APPARENTLY THE FIRST BY A FEDERAL APPEALS COURT TO SPECIFICALLY BAR SUCH CLAIMS AGAINST THE GROUP OF MEDICAL DEVICES THAT THE FDA CLASSIFIES AS REQUIRING GREATER SCRUTINY TO ENSURE SAFE USE IN ADDITION TO ZYDERM OTHER EXAMPLES OF THIS TYPE OF DEVICE INCLUDE HEART VALVES AND LENS IMPLANTS FOR CATARACT TREATMENTS IN RECENT YEARS THE FDA'S APPROVAL PROCESS HAS BEEN CRITICIZED AS LAX PARTICULARLY FOLLOWING ALLEGATIONS THAT THE AGENCY DIDN'T SUFFICIENTLY SCRUTINIZE SEVERAL COMPANIES' BREASTIMPLANT PRODUCTS NOW SOME LEGAL SPECIALISTS WORRY THAT BY PROTECTING MANUFACTURERS FROM LIABILITY THE FIRST CIRCUIT DECISION MAY MAKE THE COMPANIES LESS VIGILANT ABOUT MAKING SURE THEIR DEVICES ARE SAFE LAWYERS SAID IT IS UNCLEAR WHETHER BREAST IMPLANTS WOULD FALL UNDER THE SCOPE OF THE DECISION BECAUSE THEY WERE PUT ON THE MARKET BEFORE THE REGULATORY LAW FOR MEDICAL DEVICES TOOK EFFECT THE IMPLANTS HAVE SINCE BEEN PLACED UNDER THE SAME CLASSIFICATION OF DEVICES SUCH AS ZYDERM IT'S FRIGHTENING TO THINK THAT TOMORROW IF YOU WERE HURT BY A MEDICAL DEVICE YOU CAN'T DO ANYTHING ABOUT IT BECAUSE 12 OR 15 YEARS AGO THE FDA LOOKED AT IT AND SAID IT'S FINE MS ALLINGER SAID IN A CONCURRING OPINION ONE OF THE THREE JUDGES WHO HEARD THE APPEAL WROTE THAT IN ESTABLISHING THE FDA APPROVAL PROCESS CONGRESS INTENDED TO ENCOURAGE DEVELOPMENT OF MEDICAL DEVICES AND TO PERMIT THEM TO BE MARKETED WITHOUT DELAY PERFECTION IS IMPOSSIBLE THE JUDGE WROTE AND A FEW INDIVIDUALS MAY BE DENIED FULL PROTECTION AT THE COST OF BENEFITING THE REST LAWYERS SAID THE CASE'S BROAD SCOPE LEAVES OPEN ONLY A NARROW WINDOW FOR SUITS AGAINST MANUFACTURERS OF SUCH DEVICES POSSIBLY ALLOWING CLAIMS THAT INVOLVE CERTAIN TYPES OF FRAUD OR VIOLATIONS OF EXPRESS WARRANTIES MS ALLINGER HOWEVER SAID SHE BELIEVES THE CASE RULES OUT CLAIMS THAT THE MANUFACTURER FRAUDULENTLY WITHHELD INFORMATION FROM THE FDA FEDERAL LAW PREVENTS PLAINTIFFS FROM SUING THE FDA ITSELF A FEDERAL JUDGE RULED THAT A RACKETEERING CLAIM CAN BE ADDED TO OTHER ALLEGATIONS AGAINST ACCOUNTING FIRM KPMG PEAT MARWICK IN CONNECTION WITH ITS ALLEGEDLY FAULTY AUDITS OF DEFUNCT CRAZY EDDIE INC THE RULING THAT PEAT CAN BE SUED UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW WHICH GREATLY INCREASES POTENTIAL PENALTIES AGAINST DEFENDANTS IS ANOTHER BLOW FOR THE ACCOUNTING INDUSTRY WHICH ALREADY IS HURTING FROM HUGE LIABILITY CLAIMS JUDGE EUGENE H NICKERSON OF FEDERAL COURT IN BROOKLYN NY PERMITTED PLAINTIFF ELIAS ZINN AND MR ZINN'S ENTERTAINMENT MARKETING INC WHICH TOOK OVER THE CRAZY EDDIE ELECTRONICS CHAIN IN MID1987 TO ADD THE RACKETEERING CLAIM TO CHARGES OF SECURITIES FRAUD AGAINST PEAT THE PLAINTIFFS ARE ASKING FOR 20 MILLION IN DAMAGES AS A RESULT OF CRAZY EDDIE'S COLLAPSE IN 1987 AND THE ADDITION OF THE RICO CLAIMS RAISES POSSIBLE DAMAGES TO 60 MILLION SUCH A CLAIM WOULD BE TROUBLING NOT ONLY TO PEAT BUT TO OTHER MAJOR ACCOUNTING FIRMS WHICH HAVE MOUNTED A NATIONWIDE CAMPAIGN TO LIMIT THIRDPARTY LAWSUITS BY INVESTORS AND CREDITORS SEEKING DAMAGES FROM COLLAPSED COMPANIES' AUDITORS JUDGE NICKERSON THREW OUT NEGLIGENCE CLAIMS AGAINST THE ACCOUNTING FIRM BUT PERMITTED THE SECURITIESFRAUD ALLEGATIONS TO STAND ATTORNEYS FAMILIAR WITH PROFESSIONAL MALPRACTICE FRAUD CASES NOTE THAT SECURITIES FRAUD IS MORE DIFFICULT TO PROVE AGAINST ACCOUNTANTS THAN NEGLIGENCE CHARGES PEAT'S OUTSIDE COUNSEL SETH PAPIDOW AN ASSOCIATE WITH SHERMAN & STERLING CALLED THE JUDGE'S DECISION A PYRRHIC VICTORY FOR THE PLAINTIFF BAR IN THAT THE NEGLIGENCE CHARGES WERE ELIMINATED AGAINST PEAT HE ADDED WE'RE NOT HAPPY THAT WE DIDN'T WIN THE MOTION TO DISMISS THE RICO CLAIM BUT WE'RE CONFIDENT THAT WE WILL WIN AT THE TRIAL LEVEL BUT MAX FOLKENFLIK A PARTNER OF FOLKENFLIK & MCGERITY THE LAW FIRM FOR MR ZINN AND ENTERTAINMENT MARKETING DISAGREES MR FOLKENFLIK SAID THAT THE ADDITION OF THE RICO CLAIM COULD HELP US SHOW A JURY THAT PEAT WAS UP TO ITS GREEN EYESHADES IN FRAUD AT CRAZY EDDIE A TRIAL DATE FOR THE CASE HASN'T YET BEEN SET BUT FORMER FUGITIVE EDDIE ANTAR FOUNDER OF CRAZY EDDIE HAS BEEN EXTRADITED TO THE US FROM ISRAEL AND AWAITS TRIAL ON CRIMINAL CHARGES OF RACKETEERING AND FRAUD IN RUNNING THE COMPANY CRAZY EDDIE COLLAPSED IN 1987 AND THE SECURITIES AND EXCHANGE COMMISSION WON A 75 MILLION CIVIL JUDGMENT AGAINST MR ANTAR FOR PROFITS FRAUDULENTLY GOTTEN BY SELLING SHARES OF THE COMPANY AT INFLATED PRICES RECENTLY SEVERAL CRAZY EDDIE EXECUTIVES INCLUDING THE FOUNDER'S COUSIN SAM E ANTAR FORMER CHIEF FINANCIAL OFFICER HAVE PLEADED GUILTY TO SECURITIESFRAUD CHARGES WHILE MANY RICO CHARGES HAVE BEEN MADE AGAINST ACCOUNTING FIRMS IN OTHER CASES FEW HAVE SO FAR BEEN SUCCESSFUL BUT AN OUTOFCOURT SETTLEMENT OF 15 MILLION OF A RICO CHARGE IN 1988 AGAINST DEFUNCT LAVENTHOL & HORWATH FORMERLY THE NINTH BIGGEST ACCOUNTING FIRM HELPED LEAD TO THE FIRM'S COLLAPSE THE EXCHAIRMAN OF ALLEGHENY INTERNATIONAL INC NOW KNOWN AS SUNBEAMOSTER CO MUST PAY HIS FORMER LAWYERS 310617 IN OVERDUE BILLS A FEDERAL JURY RULED THE LAW FIRM SAID IT WITHDREW AS MR BUCKLEY'S COUNSEL IN 1991 AFTER HE REFUSED TO PAY THE LEGAL FEES A JURY IN FEDERAL COURT IN PITTSBURGH LAST WEEK ORDERED MR BUCKLEY TO PAY THE OVERDUE BILLS DESPITE MR BUCKLEY'S CLAIM THAT THE LAW FIRM HAD OVERCHARGED HIM GEORGE FAINES WHO REPRESENTED THORP REED SAID THAT INCLUDING INTEREST MR BUCKLEY OWES ABOUT 350000 ON THE UNPAID BILLS MR BUCKLEY TESTIFIED AT TRIAL THAT HE DIDN'T HAVE THE FUNDS TO PAY THE OUTSTANDING BILLS NEITHER MR BUCKLEY NOR HIS ATTORNEY TERENCE O'LEARY OF WALTON NY COULD BE REACHED FOR COMMENT SETH LAPIDOW AN ASSOCIATE WITH SHEARMAN & STERLING IS AN OUTSIDE COUNSEL FOR KPMG PEAT MARWICK IN A MALPRACTICE LAWSUIT FILED AGAINST PEAT INVOLVING ITS AUDIT OF DEFUNCT CRAZY EDDIE INC MR LAPIDOW'S NAME WAS SPELLED INCORRECTLY IN YESTERDAY'S LEGAL BEAT COLUMN 9301210072 930121 POLITICS & POLICY SENATE SWIFTLY CONFIRMS CLINTON'S PICKS TO HEAD TREASURY PENTAGON AND STATE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE ENSURING THAT PRESIDENT CLINTON HAS AT LEAST THE FIRST OUTLINES OF A GOVERNMENT IN PLACE SWIFTLY CONFIRMED HIS CHOICES TO HEAD THE TREASURY PENTAGON AND STATE DEPARTMENT TREASURY SECRETARY LLOYD BENTSEN DEFENSE SECRETARY LES ASPIN AND SECRETARY OF STATE WARREN CHRISTOPHER WERE ALL CONFIRMED WITHOUT DISSENT REFLECTING THE STRONG POLITICAL POSITION IN WHICH MR CLINTON ENTERED OFFICE YESTERDAY THE NEW PRESIDENT AND HIS TOP AIDES ARE STILL SCRAMBLING TO FILL THOUSANDS OF SUBCABINET JOBS AND OTHER POLITICAL JOBS YESTERDAY FORMER VERMONT GOV MADELEINE KUNIN WHO LOST OUT FOR THE JOB OF HEAD OF THE ENVIRONMENTAL PROTECTION AGENCY WAS NAMED DEPUTY EDUCATION SECRETARY SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE SAID MESSRS ASPIN AND CHRISTOPHER WERE CONFIRMED PROMPTLY TO ENSURE AN EFFECTIVE CHAIN OF COMMAND FOR THE NEW ADMINISTRATION WHICH FACES MILITARY AND FOREIGN POLICY CRISES IN IRAQ SOMALIA BOSNIA AND HAITI AMONG OTHER PLACES BUT THE DEMOCRATIC LEADER DECIDED TO ACT ON MR BENTSEN'S NOMINATION FIRST BECAUSE OF THE HIGH ESTEEM IN WHICH HE SAID THE COURTLY TEXAN IS HELD BY HIS SENATE COLLEAGUES MESSRS BENTSEN AND ASPIN WERE SWORN IN LATE YESTERDAY AND MR BENTSEN'S SUCCESSOR IN THE SENATE ROBERT KRUEGER MAY BE SWORN IN AS EARLY AS TODAY THE SENATE IS EXPECTED TODAY TO TAKE UP THE NOMINATIONS OF 11 MORE MAJOR CLINTON APPOINTMENTS REP MIKE ESPY D MISS TO BE AGRICULTURE SECRETARY ROBERT REICH TO BE LABOR SECRETARY DONNA SHALALA TO BE SECRETARY OF HEALTH AND HUMAN SERVICES RICHARD RILEY TO BE EDUCATION SECRETARY HENRY CISNEROS TO BE SECRETARY OF HOUSING AND URBAN DEVELOPMENT HAZEL O'LEARY TO BE ENERGY SECRETARY JESSE BROWN TO BE SECRETARY OF VETERANS' AFFAIRS CAROL BROWNER TO BE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY LEON PANETTA TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ALICE RIVLIN TO BE OMB DEPUTY DIRECTOR AND ROBERT ALTMAN TO BE DEPUTY TREASURY SECRETARY NONE IS EXPECTED TO DRAW SERIOUS OPPOSITION US TRADE REPRESENTATIVEDESIGNATE MICKEY KANTOR STILL MUST RESPOND TO SOME SENATORS' QUESTIONS CONSIDERING POSSIBLE CONFLICTS OF INTEREST ALTHOUGH THE SENATE FINANCE COMMITTEE HAS VOTED TO CONFIRM HIM AND THE SENATE COMMERCE COMMITTEE IS EXPECTED TO VOTE TODAY IN FAVOR OF THE NOMINATIONS OF RON BROWN TO BE COMMERCE SECRETARY AND FEDERICO PENA TO BE TRANSPORTATION SECRETARY SO FAR THE ONLY NOMINEE WHO FACES SIGNIFICANT POTENTIAL DIFFICULTY IS ZOE BAIRD MR CLINTON'S NOMINEE TO BE ATTORNEY GENERAL SHE HAS APOLOGIZED FOR KNOWINGLY VIOLATING IMMIGRATION LAWS BY EMPLOYING ILLEGAL IMMIGRANTS AS HOUSEHOLD WORKERS AND FAILING UNTIL RECENTLY TO PAY SOCIAL SECURITY TAXES ON THEIR WAGES THOUGH NO OVERT SENATE OPPOSITION HAS EMERGED MS BAIRD UNDERWENT TOUGH QUESTIONING FROM THE JUDICIARY COMMITTEE ON TUESDAY AND MEMBERS REPORT THAT PUBLIC REACTION IS RUNNING HEAVILY AGAINST HER REFERRING TO HER NOMINATION AN AIDE TO SENATE MINORITY LEADER ROBERT DOLE R KAN SAID IT'S FAR FROM OVER 9301210071 930121 BUSINESS BRIEF AMERICAN ECOLOGY CORP FIRM EXPECTS TO POST RISE IN FOURTHQUARTER PROFIT AMERICAN ECOLOGY CORP EXPECTS TO POST FOURTHQUARTER NET OF 60 CENTS TO 70 CENTS A SHARE AFTER A 12 CENTASHARE CHARGE COMPARED WITH YEARAGO NET OF 55 CENTS A SHARE HARRY J PHILLIPS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE CHARGE STEMS FROM RELOCATING COMPANY OFFICES TO HOUSTON FROM LOUISVILLE KY FOR THE QUARTER JUST ENDED THE INCREASE IN PERSHARE EARNINGS AFTER THE CHARGE ALSO REFLECTS A HIGHER NUMBER OF SHARES OUTSTANDING TO 85 MILLION FROM 52 MILLION A YEAR AGO FOURTHQUARTER PROFIT IS ESTIMATED AT BETWEEN 5 MILLION AND 6 MILLION AFTER THE CHARGE COMPARED WITH YEARAGO NET OF 41 MILLION MR PHILLIPS IN AN INTERVIEW ATTRIBUTED THE PROFIT RISE TO A CHANGE IN FEDERAL LAW THAT INCREASED DEMAND FOR AMERICAN ECOLOGY'S WASTEDISPOSAL SERVICES 9301210070 930121 KEY EVENTS IN IRAQ CONFRONTATION DEC 27 US F16 SHOOTS DOWN IRAQI FIGHTER THAT ENTERED THE SOUTHERN NOFLY ZONE JAN 4 US OFFICIALS SAY SADDAM HUSEIN HAS MOVED SURFACETOAIR MISSILES INTO THE SOUTHERN NOFLY ZONE JAN 6 ALLIES GIVE BAGHDAD 48 HOURS TO REMOVE MISSILES OR FACE MILITARY ACTION BAGHDAD REJECTS THE ULTIMATUM JAN 10 ARMED IRAQIS CROSS DISPUTED BORDER WITH KUWAIT AND REMOVE SILKWORM MISSILES ABANDONED IN WAR BAGHDAD BLOCKS UN FLIGHTS WITHIN IRAQ JAN 13 MORE THAN 100 US BRITISH AND FRENCH AIRCRAFT BOMB IRAQI AIRDEFENSE TARGETS IN THE SOUTHERN NOFLY ZONE JAN 16 IRAQ THREATENS TO SHOOT DOWN ALLIED AIRCRAFT OVER THE TWO NOFLY ZONES JAN 17 US WARSHIPS FIRE AT LEAST 40 CRUISE MISSILES AT A NUCLEAR FACILITY NEAR BAGHDAD AT LEAST THREE PEOPLE ARE KILLED WHEN ONE OF THE MISSILES GOES ASTRAY AND HITS THE LOBBY OF A BAGHDAD HOTEL EARLIER US FIGHTERS DOWN AN IRAQI MIG OVER NORTHERN NOFLY ZONE AND BOMB ANTIAIRCRAFT MISSILE SITES THAT FIRED ON ALLIED AIRCRAFT JAN 18 US AND BRITISH AIRCRAFT WITH FRENCH PLANES PROVIDING AIR COVER BOMB IRAQI MISSILE SITES THAT SURVIVED JAN 13 RAID IN THE SOUTHERN NOFLY ZONE AMERICAN JETS ALSO BOMB IRAQI ANTIAIRCRAFT BATTERIES IN NORTHERN ZONE JAN 19 IRAQ PROCLAIMS A UNILATERAL CEASEFIRE AND SAYS UN FLIGHTS MAY RESUME 9301210069 930121 MANAGEMENT CEO'S ILLNESS MAY ENDANGER COMPANY'S HEALTH AS WELL BY AMANDA BENNETT STAFF REPORTER OF THE WALL STREET JOURNAL WHEN A CHIEF EXECUTIVE OFFICER DEVELOPS A LIFETHREATENING ILLNESS LIKE THE BRAIN TUMOR DISCLOSED YESTERDAY BY MICHAEL WALSH TENNECO INC'S CHAIRMAN AND CEO A BUSINESS CAN FALL INTO EMOTIONAL TURMOIL AND WHAT CORPORATE AMERICA FEARS MOST UNCERTAINTY FOR SHAREHOLDERS SUPPLIERS AND CUSTOMERS THE SICKNESS RAISES QUESTIONS OF CONTINUITY WHAT WOULD THE SUCCESSION BE WHAT HAPPENS TO THE COMPANY'S STRATEGIC DIRECTION FOR EMPLOYEES AND FELLOW EXECUTIVES THE CONCERNS ARE MORE PERSONAL THEY MUST GRAPPLE WITH WORRIES ABOUT THEIR BOSS AND THE ILLNESS'S EFFECT ON THEIR OWN LIVES AND CAREERS THE BEST TACTIC FOR BOTH PUBLIC RELATIONS AND THE COMPANY'S FUNCTIONING IS COMPLETE HONESTY MANAGEMENT CONSULTANTS AND CORPORATE EXECUTIVES SAY EXECUTIVES NEED TO SHARE INFORMATION AND BE AS STRAIGHTFORWARD DIRECT AND HONEST AS YOU CAN SAYS LEOCADIA BURKE A SENIOR CONSULTANT AT THE LEVINSON INSTITUTE A MANAGEMENT CONSULTING FIRM IN BELMONT MASS BUT EVEN WHERE THE COMPANY INTENDS COMPLETE HONESTY THE NATURE OF SUCH SERIOUS ILLNESSES OFTEN CLOUDS THE ISSUE CANCER AND MANY OTHER DISEASES AREN'T COMPLETELY PREDICTABLE EQUALLY IMPORTANT CONSULTANTS SAY CEOS' POSITIONS OFTEN LEAD THEM TO MINIMIZE THEIR CONDITIONS THEY LIVE IN A WORLD WHERE THEY CAN CONTROL EVERYTHING AND HERE IS THE ULTIMATE UNCONTROLLABLE EVENT SAYS DAVID NADLER PRESIDENT OF DELTA CONSULTING GROUP IN NEW YORK BESIDES TENNECO AND MR WALSH AT LEAST TWO OTHER COMPANIES AND THEIR LEADERS HAVE RECENTLY GRAPPLED WITH SERIOUS ILLNESS AND ITS FALLOUT STEVEN J ROSS CHAIRMAN AND COCHIEF EXECUTIVE OFFICER OF TIME WARNER INC DIED LAST MONTH AFTER A YEARLONG BATTLE WITH PROSTATE CANCER DURING MUCH OF THAT TIME TIME WARNER CONTINUED TO INSIST THAT MR ROSS WAS RUNNING THE SHOW AND REGINALD LEWIS CHAIRMAN OF CLOSELY HELD TLC BEATRICE INTERNATIONAL HOLDINGS INC DIED TUESDAY THE DAY AFTER THE COMPANY ANNOUNCED HE HAD BRAIN CANCER AND WAS IN A COMA AT TENNECO WHICH AS A PUBLIC COMPANY HAS A REGULATORY OBLIGATION TO DISCLOSE SUCH INFORMATION OPENNESS WAS THE WATCHWORD VIRTUALLY AS SOON AS HIS ILLNESS WAS CONFIRMED MR WALSH INFORMED THE PRESIDENTS OF TENNECO'S SIX OPERATING COMPANIES THROUGH A CONFERENCE CALL HE READ THEM THE PRESS RELEASE AND GAVE THEM SUGGESTIONS ON HOW TO COMMUNICATE WITH THE EMPLOYEES SO THEY WOULD KNOW WHAT THE REST OF THE WORLD KNEW AND HOW MIKE LOOKED AT IT SAYS ARTHUR HOUSE VICE PRESIDENT OF CORPORATE AFFAIRS FOR THE HOUSTONBASED CONGLOMERATE THE THREEPAGE NEWS RELEASE INCLUDED THE PROBABLE PROGNOSIS NOTING THAT THIS TYPE OF BRAIN TUMOR HAS A MEDIAN SURVIVAL RATE OF FIVE TO SIX YEARS THE RELEASE WAS ACCOMPANIED BY A TWOPAGE LETTER FROM KENNETH D WELLS TENNECO'S CORPORATE PHYSICIAN TO THE COMPANY'S DIRECTORS IN THE LETTER DR WELLS ASSURED TENNECO DIRECTORS THAT MR WALSH WILL BE TREATED AGGRESSIVELY AND THAT HE WILL BE FIT TO WORK WHILE RECEIVING TREATMENT IN A HOUSTON NEWS CONFERENCE YESTERDAY MR WALSH SAID HE EXPECTS THE TREATMENT TO LAST ABOUT 11 MONTHS TENNECO OFFICIALS HOPE THAT BY BEING OPEN THE COMPANY WILL BE ABLE TO REASSURE AND MAYBE EVEN INSPIRE SHAREHOLDERS AND EMPLOYEES BY UNDERSCORING THE STRAIGHTFORWARD APPROACH OF A CHIEF EXECUTIVE WHO ARRIVED LESS THAN TWO YEARS AGO TO HELP RESURRECT THE TROUBLED BUSINESS MIKE HAS ALWAYS EMPHASIZED THAT THIS IS A COMPANY THAT FACES REALITY AND TAKES ACTION MR HOUSE SAYS EMPLOYEES ARE LIKELY TO FRET WHEN THE BOSS CONTRACTS A SERIOUS DISEASE IT'S NOT LIKE THE GUY HAS A COLD SAYS CRAIG SCHNEIER A MANAGEMENT CONSULTANT IN PRINCETON NJ EVEN THOUGH THE PROGNOSIS IS TERRIFIC AS SOON AS YOU NAME AN ILLNESS THAT IS POTENTIALLY LIFETHREATENING PEOPLE TRY TO PROTECT THE SUFFERER BY QUIETLY ASSUMING HIS OR HER DUTIES OR BY HIDING TROUBLESOME CORPORATE NEWS MR SCHNEIER ADDS DR BURKE OF THE LEVINSON INSTITUTE SAYS THAT WHETHER A POWERFUL PERSON IS SICK OR HEALTHY THERE IS STILL A WELL OF EXPECTATION COLLEAGUES AND SUBORDINATES ARE LIKELY TO EXPERIENCE FEELINGS OF ABANDONMENT OF ANGER TO SAY NOTHING OF THE USUAL FEELINGS OF PITY OR CONCERN THERE ARE TIMES OF COURSE WHEN A SERIOUS ILLNESS DEFIES PREDICTIONS TIME WARNER'S DESCRIPTION OF MR ROSS'S CONDITION CHANGED SEVERAL TIMES IN THE COURSE OF HIS FATAL ILLNESS AT TLC BEATRICE MR LEWIS APPARENTLY KNEW THAT HE WAS SUFFERING FROM BRAIN CANCER AS MUCH AS TWO MONTHS AGO BUT AS RECENTLY AS LATE LAST WEEK HE WAS APPARENTLY PLANNING TO CONDUCT BUSINESS THIS WEEK 9301210068 930121 BUSINESS BRIEF CORESTATES FINANCIAL CORP NET INCOME INCREASED 17 DURING THE FOURTH QUARTER CORESTATES FINANCIAL CORP PHILADELPHIA SAID FOURTHQUARTER NET INCOME ROSE 17 IN PART BECAUSE OF LOWER CHARGEOFFS FOR BAD LOANS FOR THE QUARTER NET ROSE TO 691 MILLION OR 119 A SHARE FROM 589 MILLION OR 103 A SHARE A YEAR EARLIER AFTER THE ANNOUNCEMENT OF ITS RESULTS WHICH WERE SLIGHTLY LOWER THAN ANALYSTS' EXPECTATIONS CORESTATES' SHARES FELL 1375 TO 56625 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY SAID NET CHARGEOFFS FOR NONPERFORMING ASSETS DROPPED 224 TO 322 MILLION AND THE PROVISION FOR LOAN LOSSES WAS DOWN 42 TO 27 MILLION FOR THE YEAR CORESTATES' EARNINGS FELL 20 TO 1814 MILLION OR 314 A SHARE FROM 2277 MILLION OR 401 A SHARE A YEAR EARLIER AS A RESULT OF AN 81 MILLION ONETIME CHARGE TO ACCOUNT FOR POSTRETIREMENT HEALTH BENEFITS 9301210066 930121 BUSINESS BRIEF DOFASCO INC COMPANY TMB END TALKS ON SALE OF RAILWAY CAR UNIT DOFASCO INC SAID TALKS WERE ENDED ON THE SALE OF ITS NATIONAL STEEL CAR LTD UNIT TO TMB INDUSTRIES OF CHICAGO THE HAMILTON ONTARIO STEELMAKER SAID IT COULDN'T REACH AN APPROPRIATE AGREEMENT WITH TMB ON THE PROPOSED SALE AFTER SEVERAL MONTHS OF THOROUGH DISCUSSIONS NATIONAL STEEL CAR CANADA'S LARGEST MAKER OF RAILWAY FREIGHT CARS WITH ABOUT 50 MILLION IN ANNUAL REVENUE IS A VIABLE BUSINESS AND WE FULLY INTEND TO SUPPORT THE COMPANY AND PROVIDE EVERY ASSISTANCE IN RETURNING IT TO PROFITABILITY IN ITS NORTH AMERICAN MARKETPLACE DOFASCO SAID 9301210065 930121 MARKETING BRIEF GRAY COMMUNICATIONS SYSTEMS INC SALE OF CONCERN OR ITS UNITS IS CONSIDERED BY COMPANY GRAY COMMUNICATIONS SYSTEMS INC BASED IN ALBANY GA SAID IT MAY SELL THE COMPANY OR ONE OR MORE OF ITS SUBSIDIARIES GRAY OWNS AMONG OTHER THINGS THREE NBCAFFILIATED TELEVISION STATIONS THE ALBANY HERALD A DAILY NEWSPAPER AND TWO WAREHOUSES LODESTAR GROUP IN NEW YORK IS PROVIDING FINANCIAL ADVICE AND OTHER INVESTMENT BANKING SERVICES THE COMPANY SAID GRAY WAS QUOTED YESTERDAY IN OVERTHECOUNTER TRADING AT 14 A SHARE BID UP 1 9301210064 930121 BUSINESS BRIEF BIOGEN INC BIOTECHNOLOGY CONCERN'S NET SURGED FOR FOURTH QUARTER BIOGEN INC SAID FOURTHQUARTER NET INCOME SOARED TO 257 MILLION OR 75 CENTS A SHARE ON REVENUE OF 545 MILLION REFLECTING STRONG SALES BY LICENSEES OF ITS HEPATITIS B AND ALPHA INTERFERON PRODUCTS THE STRONGER RESULTS HAD BEEN EXPECTED AND INCLUDED 14 MILLION OF REVENUE FROM THIRDQUARTER SALES BY LICENSEES BIOGEN SAID IT EXPECTS QUARTERLY EARNINGS TO FLUCTUATE IN THE COMING YEAR AT LEVELS SIGNIFICANTLY BELOW THOSE OF THE 1992 FOURTH QUARTER IN THE YEARAGO FOURTH QUARTER NET WAS 1 MILLION OR THREE CENTS A SHARE ON REVENUE OF 176 MILLION BIOGEN SHARES CLOSED AT 41625 UP 1375 IN OVERTHECOUNTER TRADING FOR THE YEAR THE CAMBRIDGE MASS BIOTECHNOLOGY COMPANY REPORTED NET OF 383 MILLION OR 112 A SHARE ON REVENUE OF 1351 MILLION NET IN 1991 WAS 72 MILLION OR 15 CENTS A SHARE ON REVENUE OF 696 MILLION 9301210063 930121 FOR ARMY ARCHERD THE WAY TO THE STARS IS VIA HIS COLUMN DAILY VARIETY VETERAN'S LOVE OF HOLLYWOOD EARNS HIM TRUST SCOOPS GOOD TABLES BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD IT'S MONDAY NIGHT IN HOLLYWOOD AND THAT INSIDERS KNOW MEANS MORTON'S ITS ELEGANT DINING ROOM IS THICK WITH STARS AND STUDIO CHIEFS AT THE BEST TABLE HOWEVER ISN'T JULIA ROBERTS OR KEVIN COSTNER IT'S ARMY ARCHERD LONGTIME COLUMNIST FOR THE ENTERTAINMENT INDUSTRY TRADE PAPER DAILY VARIETY HARD AT WORK GATHERING ITEMS FOR HIS JUST FOR VARIETY COLUMN DYNASTY STAR JOAN COLLINS WALTZES INTO THE RESTAURANT AND MAKES A BEELINE FOR MR ARCHERD'S TABLE DAHLING DAHLING DAHLING SHE SAYS IN HER HEAVY BRITISH ACCENT EXCHANGING AIR KISSES THANK YOU DAHLING FOR WHAT YOU WROTE IN YOUR COLUMN A FEW DAYS EARLIER MR ARCHERD NOTED MISS COLLINS'S PLANS TO WRITE ANOTHER BOOK AND DO AN INFOMERCIAL FOR A BEAUTY PRODUCT YOU CAN'T TRUST ANYBODY SAYS MISS COLLINS A SURVIVOR OF THE HOLLYWOOD SNAKE PIT BUT YOU CAN TRUST ARMY AT 71 MR ARCHERD IS BY SOME MEASURES HOLLYWOOD'S MOST IMPORTANT COLUMNIST HE HAS HIS OWN STAR ON THE HOLLYWOOD WALK OF FAME TV AUDIENCES WORLDWIDE KNOW HIM AS THE GUY IN THE TUXEDO WHO INTERVIEWS STARS ARRIVING FOR THE ANNUAL ACADEMY AWARDS CEREMONY HE'S BEEN THE COPRODUCER AND COHOST OF THE PEOPLE'S CHOICE AWARDS SINCE 1974 NEXT WEEK HE WILL BE HONORED AT A STARSTUDDED CHARITY BENEFIT CELEBRATING HIS 40 YEARS OF WRITING ABOUT HOLLYWOOD IN A TOWN THAT WORSHIPS WEALTH AND FAME AND POWER MR ARCHERD IS INFLUENTIAL BECAUSE HE'S NICE WHILE OTHER COLUMNISTS CRITICIZE THE INDUSTRY AND ITS STARS MR ARCHERD REMAINS UNABASHEDLY THE TOWN'S BIGGEST FAN READERS OF VARIETY WITH A CIRCULATION OF 24000 ARE HOLLYWOOD'S OPINION MAKERS AND CULTURAL ICONS MAKING HIM THE HEIR TO LOUELLA PARSONS AND HEDDA HOPPER MINUS THE STING AT HIS SPARSELY DECORATED OFFICE MR ARCHERD JUGGLES FOUR PHONE LINES AND RUMMAGES THROUGH A FOOTHIGH STACK OF FAXES ONE SAYS ITALIAN NEWSPAPERS ARE REPORTING THAT BURT LANCASTER WHO NOT LONG AGO SUFFERED A STROKE HAS SAID GOODBYE TO HIS FAMILY AND FALLEN INTO A COMA MR ARCHERD GETS ON THE PHONE AND DIALS THE LANCASTERS SUSAN HI IT'S ARMY ARCHERD HE SAYS IN HIS TRADITIONALLY CHEERY VOICE MRS LANCASTER SAYS BURT'S NOT IN A COMA HE'S DOING MUCH BETTER HE QUOTES HER AS SAYING IN THE NEXT DAY'S COLUMN TELLING READERS TO DISREGARD REPORTS FROM MILAN THE PHONE RINGS AGAIN IT'S AN AGENT FROM MICHAEL OVITZ'S POWERFUL CREATIVE ARTISTS AGENCY WHAT'S NEW OVER THERE MR ARCHERD ASKS IS OVITZ BACK DID YOU SIGN ANYBODY LOSE ANYBODY HE SCRIBBLES HIS INTERVIEWS ON PAPER ONLY RECENTLY DID HE EXCHANGE HIS MANUAL TYPEWRITER FOR A COMPUTER DECIDING TO DO AN ITEM ON THE ANNIVERSARY OF ELVIS PRESLEY'S BIRTH HE WANTS TO CHECK IN WITH THE LATE SINGER'S MANAGER TOM PARKER HE PULLS OUT HIS PHONE FILE A TWODRAWER LIBRARY OF HUNDREDS OF 3BY5 CARDS THAT LIST HOME NUMBERS FOR THE STARS AS WELL AS THEIR BOYFRIENDS GIRLFRIENDS AND AGENTS BOY THERE ARE A LOT OF PARKERS HE SAYS FLIPPING THROUGH CARDS ALAN PARKER FESS PARKER SARAH JESSICA PARKER JAMISON PARKER HERE IT IS COL TOM PARKER REACHING TOM PARKER AT HOME MR ARCHERD GETS THE QUOTE HE NEEDS COMPARED WITH HIS CELEBRITY FRIENDS MR ARCHERD IS A WORKING STIFF TO EARN A SALARY IN THE FIVE FIGURES HE COMES IN ABOUT 10 EVERY MORNING OFTEN AFTER A BUSINESS BREAKFAST AND WORKS THE PHONES UNTIL TURNING IN HIS 900WORD COLUMN AROUND 530 PM I DON'T GO OUT FOR LUNCH HE SAYS THEY COME AROUND WITH A CART AND THROW A TACO AT ME MR ARCHERD READILY CONCEDES HIS RENOWN IN HOLLYWOOD OWES LARGELY TO HIS KIND COVERAGE OF IT AND HE PLAYS THE GAME WITH A SOMEWHAT DATED ETHICS RULE BOOK ACCEPTING EMCEE FEES FROM STUDIOS AND ALLOWING THEM TO PICK UP THE TAB FOR SUCH THINGS AS TRAVEL TO MOVIE LOCATIONS WE'RE CONFIDENT THIS HASN'T AFFECTED THE OBJECTIVITY OF HIS COVERAGE SAYS STEPHEN WEST DAILY VARIETY EXECUTIVE EDITOR MR ARCHERD'S DAILY COLUMN IS A PASTICHE OF MOSTLY SHORT UNRELATED ITEMS THAT RANGE FROM WHERE JOHNNY CARSON IS CURRENTLY VACATIONING AFRICA TO WHERE LORETTA YOUNG SPENT HER 80TH BIRTHDAY PALM SPRINGS MR ARCHERD DOES BREAK NEWS HIS BIGGEST SCOOP CAME IN 1985 ROCK HUDSON HAD AIDS THAT STORY HE SAYS PROUDLY MADE THE WORLD AIDSCONSCIOUS IT WAS A CAREFULLY WORDED ITEM THAT DIDN'T USE THE BLUNT ACRONYM AIDS UNTIL THE SEVENTH SENTENCE THE WHISPERING CAMPAIGN ON ROCK HUDSON CAN AND SHOULD STOP IT BEGAN MR ARCHERD HAD GOTTEN THE AIDS STORY CONFIRMED MONTHS PRIOR TO USING IT BUT HELD OFF BECAUSE OF CONCERN FOR MR HUDSON'S PRIVACY HE RELENTED ONLY AFTER MR HUDSON APPEARED IN PUBLIC UNMISTAKABLY ILL AND AFTER SPECULATION BECAME RAMPANT MR ARCHERD HAS LARGELY IGNORED SCANDAL AND HE CAN TICK OFF A LIST OF POTENTIAL SCOOPS CELEBRITY INFIDELITIES FOR EXAMPLE THAT WENT UNPRINTED I HAVE A GREAT DEAL OF RESPECT FOR THE PEOPLE I WRITE ABOUT HE SAYS HE'S BEEN KIND TO PEOPLE IN HOLLYWOOD SAYS HIS WIFE SELMA KINDER THAN THEY KNOW THE TOWN HAS BEEN KIND TO HER TOO SHE SAYS MATTEROFFACTLY THAT HER ACTING CAREER INCLUDING BIT PARTS IN LETHAL WEAPON 3 AND CAGNEY & LACEY WAS LAUNCHED WITH WHAT SHE CALLS CHARITY JOBS FROM DIRECTORS AND PRODUCERS ARMY WRITES ABOUT HIS INFLUENCE WON'T LAST FOREVER TODAY MANY YOUNG AGENTS AND PRODUCTION EXECUTIVES IN HOLLYWOOD DON'T AUTOMATICALLY TURN TO MR ARCHERD'S COLUMN EVERY MORNING OVER COFFEE THEY PREFER SPY OR BUZZ MAGAZINES OR CLAUDIA ELLER MR ARCHERD'S FELLOW COLUMNIST AT DAILY VARIETY WHOSE WEEKLY DISH COLUMN TYPICALLY ISN'T NICE AT ALL BUT NO COMPETITOR CAN BEGIN TO RIVAL MR ARCHERD FOR CONNECTIONS OR EXPERIENCE IN HOLLYWOOD A NEW YORK NATIVE WHO MOVED HERE WITH HIS PARENTS IN 1939 ARMY SHORT FOR ARMAND ARCHERD JOINED THE NOWDEFUNCT LOS ANGELES HERALD EXPRESS SOON AFTER COLLEGE WORKING AS A LEGMAN FOR THE PAPER'S HOLLYWOOD COLUMNIST HARRISON CARROLL THE GOAL WAS ALWAYS TO BEAT CROSSTOWN RIVALS HOPPER AND PARSONS WE HAD FIVE EDITIONS AND WE'D ALWAYS TRY TO GET SOMETHING THAT WOULD BLOW THE TOP OFF THE TOWN MR ARCHERD RECALLS HE GOT HIS OWN COLUMN AT DAILY VARIETY IN 1953 INFLUENCED BY DANNY THOMAS'S COMPLAINTS THAT THE MEDIA REPORTED ONLY NEGATIVE NEWS MR ARCHERD VOWED TO BEGIN EACH COLUMN WITH AN UPBEAT GOOD MORNING AT MORTON'S MR ARCHERD HAS HIS EYE ON A SMALL TABLE NEAR THE DOOR WHERE THREE POWERFUL HOLLYWOOD MANAGERS ARE TALKING HE MAKES A NOTE TO CHECK WITH THE PRINCIPALS TO SEE IF ANY DEALS ARE COOKING AS MR ARCHERD AND HIS WIFE ENJOY DINNER A PARADE OF CELEBRITIES STOP BY TO SAY HELLO MARVIN DAVIS PIA ZADORA JUDITH KRANTZ IRVING SWIFTY LAZAR I SOMETIMES WONDER WHAT WILL HAPPEN IF ARMY EVER STOPS WRITING THE COLUMN WILL THEY STILL BE OUR FRIENDS MUSES MRS ARCHERD YOU HOPE THEY WILL BUT YOU THINK MAYBE THEY WON'T 9301210062 930121 LEISURE & ARTS THE GALLERY A QUEEN FOR POSTCOMMUNISTS BY ERNEST BECK BUDAPEST AS HUNGARIANS FACE AN UNCERTAIN FUTURE OF ECONOMIC HARD TIMES AND WARRING NEIGHBORS MANY ARE LOOKING BACK WITH NOSTALGIA AT A SEEMINGLY MORE SECURE ERA WHEN THE HAPSBURGS RULED THE REALM FROM VIENNA AND KAISER FRANZ JOSEF HELD DOMINION OVER A FARFLUNG EMPIRE YET THE OBJECT OF LOCAL ADORATION IS NOT THE CURMUDGEONLY LOOKING EMPEROR WITH HIS STRAGGLY MUTTONCHOP SIDEBURNS IT IS HIS RAVISHINGLY BEAUTIFUL WIFE ELISABETH WITH HER SLIM WAISTLINE AND UNCANNY ABILITY TO SPEAK HUNGARIAN WHOSE 19THCENTURY CULT FOLLOWING HAS BEEN REVIVED BY MODERN MAGYAR ROYALTY WATCHERS NOW LEGIONS OF ELISABETH FANS CAN REVEL IN THE ARTIFACTS OF HER LIFE AND TIMES A WIDERANGING EXHIBITION ENTITLED ELISABETH QUEEN OF THE HUNGARIANS IS PACKING IN CROWDS AT THE NATIONAL MUSEUM HERE UNTIL JAN 31 AFTER 40 YEARS OF COMMUNIST RULE WHICH PERSECUTED THE NOBILITY AND LATER FROWNED ON TABLOID TITILLATION ABOUT THE ARISTOCRACY DEMOCRACY HAS OPENED THE DOOR FOR AN ELISABETH COMEBACK ELDERLY WOMEN AND BUSLOADS OF SCHOOLCHILDREN CROWD INTO THE EXHIBITION AND JOSTLE TO SEE EVERYTHING FROM THE QUEEN'S FAVORITE SADDLE TO HER FRILLY BLACKLACE BODICE IT'S EASY TO UNDERSTAND THE ALLURE HUNGARY NEVER HAD ITS OWN QUEEN AND HUNGARIANS ALWAYS FELT LIKE POOR COUSINS TO THEIR STUFFY AUSTRIAN NEIGHBORS SO THEY ADOPTED ELISABETH AS THEIR OWN TODAY ENTERING THE EXHIBITION IS LIKE STEPPING INTO HER LOST WORLD OF ELEGANCE AND GRACE THE DRAB SMOGGY STREET WITH ITS DECREPIT POCKMARKED BUILDINGS AND TACKY SHOPS IS LEFT BEHIND HERE IS THE MONARCH'S DAINTY HEREND DINNER SERVICE HER PEARLENCRUSTED CROWN HER SMARTLY DRESSED FAMILY LAZING AROUND AT THE CASTLE ON A SUMMER AFTERNOON THESE ARE PLEASURES MOST HUNGARIANS CAN ONLY LONG FOR THERE IS SO MUCH KITSCHY MEMORABILIA ON VIEW THAT THE EXHIBITION ROOM SOMETIMES RESEMBLES A ROYAL VERSION OF ELVIS PRESLEY'S GRACELAND ON DISPLAY ARE BUTTONS FROM HER DRESSES ASHTRAYS AND STAMPS WITH HER SMILING VISAGE AND LETTERS SHE PENNED IN HUNGARIAN THERE ARE PLASTER CASTS OF MODELS FOR ELISABETH MEMORIAL STATUES AND ON THE WALL IS A MAP WITH PINS SHOWING WHERE IN THE VAST REACHES OF THE FORMER DUAL MONARCHY STREETS AND SQUARES ARE NAMED AFTER THE EMPRESS MORE IMPORTANTLY THERE IS THE FAIRYTALE STORY TOLD THROUGH PAINTINGS PRINTS AND LITHOGRAPHS OF HOW THE BAVARIAN DUCHESS MET FRANZ JOSEF AND WAS TRANSFORMED FROM TOMBOY TO RADIANT YOUNG BRIDE DRESSED IN A GOLDEMBROIDERED GOWN AND HOLDING AN OSTRICHFEATHER FAN AT THE CORONATION IN PESTBUDA AS IT WAS CALLED THEN WE SEE THE ROYAL COUPLE RIDING IN A BAROQUE CARRIAGE THROUGH STREETS BEDECKED WITH BUNTING AND HUNGARIAN FLAGS WITH HER ARCHED EYEBROWS MILKY SKIN AND FLOWING REDDISHBROWN TRESSES ELISABETH UNDOUBTEDLY CAUSED THE YOUNG KAISER DESCRIBED BY HISTORIANS AS A COLD AND DULL BUREAUCRAT TO GO WEAK AT THE KNEES A FULLLENGTH PORTRAIT COMPLETED AT THE TIME OF THE CORONATION IN 1867 PRESENTS HER AS COMELY AND FAIR A MADONNALIKE PRESENCE DRAPED IN A SHIMMERING SHOULDERLESS SILK DRESS AS THE EXHIBITION SAYS WITH NO UNDUE MODESTY ELISABETH WAS THE WORLD'S MOST BEAUTIFUL WOMAN NOT SURPRISINGLY HUNGARIANS TOO FELL FOR HER ESPECIALLY AFTER SHE MASTERED THEIR DIFFICULT LANGUAGE AND SPENT LONG PERIODS AT THE HAPSBURG SUMMER RETREAT NEAR BUDAPEST A DECISION THAT FULFILLED HUNGARIAN DREAMS THAT THE ROYAL COURT RESIDE NOT ONLY IN VIENNA THERE SHE FLIRTED WITH THE LOCAL GENTRY RODE HORSES AND WENT ON HUNTS ALL CAREFULLY RECORDED IN PRINTS DEPICTING AN IDYLLIC LIFE OF LEISURE SOON SHE FELT AN AFFECTION FOR HER SECOND HOME A FADED LITHOGRAPH SHOWS ELISABETH ARRIVING FOR A CONCERT IN THE CAPITAL WEARING A GOWN IN THE COLORS OF THE HUNGARIAN FLAG ACCORDING TO THE BREATHLESS COMMENTARY PROVIDED IN ENGLISH AND HUNGARIAN BUT NOT IN GERMAN THIS MADE THE HEARTS OF HUNGARIAN PATRIOTS QUICKEN SHE WAS NO BIMBO THOUGH AFTER BEFRIENDING THE HUNGARIAN PRIME MINISTER COUNT GYULA ANDRASSY ELISABETH BECAME A SECRET GOBETWEEN IN THE WORKING OUT OF THE COMPROMISE OF 1867 IN WHICH THE KAISER YIELDED TO HER ADVICE AND GRANTED HUNGARY CONSIDERABLE AUTONOMY WITHIN THE DUAL MONARCHY INCLUDING A SEPARATE GOVERNMENT AND PARLIAMENT AND CONSIDERABLE CONTROL OVER ITS OWN AFFAIRS THE RETURN TO SOVEREIGNTY THEN HAS CONTEMPORARY PARALLELS WITH THE END OF SOVIET DOMINATION IN 1989 AND THE CAPITALISM THAT FLOURISHED AFTERWARD WAS MUCH LIKE THE FLEDGLING MARKET ECONOMY NOW UNDERWAY YET THE LIFE OF THE QUEEN WAS FAR FROM ROSY IN HER LATER YEARS SHE HAD TO PUT UP WITH A SHREWISH MOTHERINLAW SEEN IN A PORTRAIT WITH A PUCKERED FACE TIED TIGHTLY IN A BONNET WHO TRIED TO CONTROL THE UPBRINGING OF HER CHILDREN AND SHE DEVELOPED A PATHOLOGICAL FEAR OF OBESITY THAT LED HER TO THE SCALES THREE TIMES A DAY TO CHECK FOR EXTRA OUNCES THE MYSTERIOUS SUICIDE IN 1889 OF HER BELOVED ONLY SON RUDOLPH PLUNGED HER INTO GRIEF SHE TOOK TO WRITING POETRY AND TAKING LONG TRIPS ABROAD INCOGNITO DRESSED IN A SIMPLE BLACK DRESS IN FACT IT'S SAFE TO SAY THAT SOME OF THE CURRENT FASCINATION WITH ELISABETH COMES FROM HER LIFE'S STRANGE RESEMBLANCE TO THAT OF THE UNHAPPY PRINCESS DIANA WHOSE TRIBULATIONS ARE REGULARLY REPORTED IN THE HUNGARIAN MEDIA FOR ELISABETH TOO THERE WERE RUMORS OF A WOMANIZING HUSBAND HINTS OF AN ANOREXICLIKE ILLNESS AND LONG BOUTS OF DEPRESSION BUT PERHAPS IT'S THE HUNGARIAN PENCHANT FOR MELANCHOLY AND GLOOMY THOUGHTS THAT LIES AT THE HEART OF THEIR SYMPATHY FOR THE HAPSBURG MONARCH WHO DIED TRAGICALLY WHILE ON A TRIP TO SWITZERLAND IN 1898 SHE WAS STABBED TO DEATH BY AN ITALIAN ANARCHIST AS SHE BOARDED A STEAMER TO TAKE A CRUISE ON LAKE GENEVA THE NATION WAS THROWN INTO MOURNING A HIGHLIGHT OF THE EXHIBITION IS THE DRESS SHE WAS WEARING ON THE DAY SHE DIED COMPLETE WITH AN OMINOUS GASH NEAR THE HEART AND IF THERE ARE ANY DOUBTS THAT HUNGARY CLAIMS THE QUEEN FOR ITSELF LOOK AT A FUNERAL ENGRAVING THAT SHOWS ELISABETH WITH ANGEL'S WINGS RISING TO HEAVEN WEARING THE HOLY HUNGARIAN CROWN OF ST STEPHEN AND A HUSSAR GUARD WEEPING OVER HER CRYPT HUNGARIAN ENTREPRENEURS ARE WASTING NO TIME TRYING TO CASH IN ON THE ELISABETH CRAZE AND GEARING UP ALSO PERHAPS FOR THE VISIT IN MAY OF BRITAIN'S QUEEN ELIZABETH HER NAME AND FACE ARE POPPING UP EVERYWHERE FROM THE RENAMED QUEEN ELISABETH BALLROOM AT GUNDEL'S RESTAURANT TO THE NEW ELISABETH COFFEE HOUSE SERVING ELISABETH ICE CREAM SUNDAES TWO SCOOPS OF VANILLA ONE OF STRAWBERRY A FOURPART TELEVISION SERIES ABOUT HER LIFE STARRING ROMY SCHNEIDER AIRED RECENTLY AND A COMPANION BOOK HAS BEEN A BESTSELLER THERE ARE NO TSHIRTS AND LUNCH BOXES YET BUT THE CITY HAS DECIDED TO GET INTO THE ACT LENIN BOULEVARD IS NOW YOU GUESSED IT ELISABETH BOULEVARD RETURNED TO ITS ORIGINAL PRECOMMUNIST NAME MANY HUNGARIANS HOWEVER PREFER SIMPLER MORE PERSONAL TRIBUTES THERE ARE ALWAYS FRESH FLOWERS PLACED AT ELISABETH'S STATUE HERE NEAR THE BRIDGE OVER THE DANUBE THAT BEARS HER NAME MR BECK IS SPECIAL CORRESPONDENT FOR THE WALL STREET JOURNAL EUROPE IN BUDAPEST 9301210061 930121 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO CARTRIDGE RECYCLING A GARAGESHOP BUSINESS GOES CORPORATE OFFICE SUPPLY GIANTS ELBOW THEIR WAY INTO THE 300 MILLION BUSINESS OF RECYCLING LASERPRINTER CARTRIDGES FOR REUSE COMPANIES LIKE NASHUA CORP IN NASHUA NH AND PM CO CINCINNATI ENTERED THE FIELD JUST OVER TWO YEARS AGO AND RAPIDLY WRESTED SHARE FROM LOCAL AND REGIONAL RECYCLERS BELLSOUTH TELECOMMUNICATIONS USED TO BUY RECYCLED CARTRIDGES LOCALLY NOW ITS OFFICES IN NINE STATES WILL BE SUPPLIED CARTRIDGES RECYCLED BY GRC CORP THROUGH A DEALER NETWORK THE NEXT FEW YEARS WILL BRING MORE CONSOLIDATION SAYS JOHN SHANE OF BIS STRATEGIC DECISIONS THAT'S BECAUSE THE MOSTRECYCLED CARTRIDGE IS THE ONE USED FOR THE CANON LBPSX ENGINE WHICH IS BEING PHASED OUT TO STAY IN BUSINESS RECYCLERS WILL HAVE TO MASTER DIFFERENT CARTRIDGES THE LARGER FIRMS ARE MORE LIKELY TO HAVE THE TECHNICAL STRENGTH TO DO THIS MR SHANE SAYS JUST LAST YEAR PM CO ACQUIRED A DENVER FIRM PARTLY TO GAIN EXPERTISE IN RECYCLING DIFFERENT CARTRIDGE PARTS RECYCLED CARTRIDGES SELL FOR ABOUT 55 COMPARED WITH ABOUT 80 FOR A NEW ONE CULTURE CLASH FOREIGN FOLK MEDICINE GAINS ATTENTION IN HOSPITALS THE RESIDENTS' TRAINING PROGRAM AT MONTEFIORE MEDICAL CENTER BRONX NY INCLUDES HEALTH BELIEFS OF OTHER CULTURES MANY CHINESE AND HISPANIC PATIENTS RECEIVE ALTERNATIVE MEDICINE LIKE HERBAL TREATMENTS SAYS DR HAL STRELNICK THE PROGRAM TEACHES DOCTORS HOW TO UNDERSTAND THE PATIENT'S WORLD AND NOT THE TECHNIQUES THEMSELVES MANHATTAN'S NEW YORK DOWNTOWN HOSPITAL HAS TRANSCULTURAL WORKSHOPS TO HELP NURSES DEAL WITH CHINESE PATIENTS THE MERCK MANUAL LONG A REFERENCE ON WESTERN MEDICINE INTRODUCED A SECTION ON CROSSCULTURAL MEDICINE IN ITS NEWEST EDITION IT DISCUSSES FOLK IDEAS ABOUT FERTILITY CONTAGION AND BLOOD ROBERT BERKOW EDITOR IN CHIEF SAYS DOCTORS ARE COMING INTO GREATER CONTACT WITH THESE IDEAS AS THIRD WORLD IMMIGRATION RISES ONE WORKSHOP TOPIC AT DOWNTOWN HOSPITAL THE CHINESE BELIEF THAT HEALTH IS THE BALANCE OF HOT AND COLD FORCES THE BOATING INDUSTRY TURNS UPBEAT AFTER FOUR YEARS IN THE DOLDRUMS LONGBECALMED BOAT MAKERS TRUMPET A RECOVERY THIS YEAR TAKING HEART FROM SIGNS OF STRONGER CONSUMER CONFIDENCE AND THE EXPECTED REPEAL OF A 10 LUXURY TAX ON BOATS COSTING 100000 OR MORE JILL KRUTICK A SALOMON BROTHERS ANALYST PREDICTS A 5 TO 8 RISE IN SALES EVEN THOUGH SOME SIGNALS HAVE BEEN DISAPPOINTING PARTLY BECAUSE OF BAD WEATHER SHE SAYS ATTENDANCE FELL AT RECENT BOAT SHOWS IN CHICAGO AND NEW YORK BUT DAVID BLANCETT THE NATIONAL MARINE BANKERS ASSOCIATION SAYS LENDERS AT THE SHOWS REPORT A SLIGHT INCREASE IN APPLICATIONS OUTBOARD MARINE CORP'S CHRISCRAFT DIVISION SAYS IT LOGGED A 25 RISE IN CHICAGO ORDERS STILL THERE'S SOME TRICKY SAILING AHEAD THE NATIONAL MARINE MANUFACTURERS ASSOCIATION READIES TO NAVIGATE POTENTIAL ENVIRONMENTAL SHOALS LIKE STANDARDS FOR MOTOR EMISSION AND FIBERGLASS DISPOSAL BOATING RETAIL SALES CRESTED IN 1988 AT 1793 BILLION THEN PLUNGED 42 TO 1032 BILLION LAST YEAR SCOUTING FOR BUSINESS SHENANDOAH IOWA PAYS 5 TO ANYONE WITH LEADS ON COMPANIES LOOKING TO RELOCATE AND 50 IF A PROSPECT IS INVITED TO VISIT SHOULD THE COMPANY RELOCATE THE TIPSTER GETS 20 FOR EVERY FULLTIME JOB CREATED THE CITY COLLECTED 18 LEADS SINCE THE PROGRAM BEGAN LAST SUMMER AND SAYS IT IS CLOSE TO A DEAL SEND RILKE NOT ROSES SAYS SENDABOOK A TELEPHONEORDER SERVICE THAT LINKS BOOKSTORES MUCH LIKE THE ONE FOR FLORISTS SET TO START FEB 1 THE SERVICE HAS SIGNED UP 300 BOOKSTORES IN 44 STATES BUT MUST BATTLE SKEPTICS A SIMILAR ATTEMPT BY ANOTHER COMPANY FAILED IN 1987 PROXY PUZZLE MUCH OF CORPORATE AMERICA APPEARS UNWORRIED ABOUT NEW RULES ON EXECUTIVEPAY DISCLOSURES SAYS CORPORATE INVESTOR COMMUNICATIONS INC OF 290 FIRMS SURVEYED 52 SAID THEY SPENT LITTLE OR NO TIME ON THE RULES MANY SMALL COMPANIES THINK IT IS A BIGCOMPANY PROBLEM CIC SAYS BACKTOBASICS STILL RULES FOR ANNUAL REPORTS BUT SOME FRILLS SNEAK IN THE SPARTAN AESTHETIC IS SOFTENED IN THE LATEST CROP OF ANNUAL REPORTS AS SOME RETURN TO MORE COLOR AND UNUSUAL FORMATS THE REPORT FROM FAMILY DOLLAR STORES INC MATTHEWS NC COMES IN TABLOID FORM MATT PHELAN OF ANNUAL REPORTS INC SUGGESTS SOME FIRMS WANT TO TRY SOMETHING NEW TO STAND OUT IN A FIELD MADE MORE CROWDED BY NEW ISSUES LAST YEAR SO FAR ABOUT 7 MORE 1992 REPORTS ARE DONE IN FOUR OR MORE COLORS THAN LAST YEAR SAYS REPORTS TRACKER SID CATO BUT BUDGETS WILL STAY TIGHT HE ADDS SAYING THAT COSTS PER REPORT WILL HOLD AT LAST YEAR'S 260 LEVEL CODA ENERGY INC HOUSTON OPTS FOR SHOWINESS BUT STICKS TO LAST YEAR'S BUDGET STILL MANY COMPANIES CLEAVE TO THE LEANANDMEAN APPROACH SCOTT PAPER CO SLASHES ITS BUDGET AND CHANGES DESIGNERS IN THE PROCESS IT PRINTS THE REPORT ON ITS OWN PAPER USING FOR THE FIRST TIME A GLOSSY RECYCLED PRODUCT HANNAFORD BROS CO IN THE THROES OF A COSTCUTTING CAMPAIGN TRIMS PAGES FROM ITS ANNUAL REPORT BY FOUR TO 32 BRIEFS HAD ENOUGH OF THE INAUGURAL HOOPLA COMING IN MARCH THE COMPLETE CLINTON ECONOMIC CONFERENCE ON CDROM DISK FROM JOURNAL GRAPHICS INC THE BUFFALO BILLS' SCORE LAST WEEKEND 29 TRANSLATES TO A 029 POINT DISCOUNT ON CONSUMER LOANS OFFERED BY KEY BANK OF NEW YORK FROM NOW UNTIL THE SUPER BOWL CODA ENERGY INC IS BASED IN DALLAS THURSDAY'S BUSINESS BULLETIN COLUMN INCORRECTLY SAID THE OIL AND NATURAL GAS COMPANY WAS BASED IN HOUSTON 9301210059 930121 BUSINESS BRIEF ALASKA AIRLINES CARRIER CUTS SOME FLIGHTS SETS LAYOFFS OF 370 WORKERS ALASKA AIRLINES SAID IT WILL ELIMINATE 58 OF ITS 316 DAILY FLIGHTS AND LAY OFF 140 PILOTS AND 230 FLIGHT ATTENDANTS TO ADJUST TO A WEAK AIRTRAVEL MARKET THE LAYOFFS AFFECT ABOUT 15 OF THE SEATTLEBASED CARRIER'S PILOTS AND FLIGHT ATTENDANTS THE MOVE FOLLOWS ELIMINATION OF THE AIRLINE'S STATION IN TUCSON ARIZ AND ITS SUSPENSION OF SERVICE TO CERTAIN LESS TRAVELED ALASKAN DESTINATIONS THE CARRIER IS A UNIT OF ALASKA AIR GROUP INC RAY VECCI CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE AIRLINE SAID THE CHANGES ARE PART OF AN EFFORT TO ADJUST CAPACITY TO ECONOMIC REALITIES AND SEASONAL FLUCTUATIONS IN TRAFFIC RIGHT NOW THE MARKETS ARE OBVIOUSLY THIN SAID A SPOKESMAN FOR THE CARRIER ADDING HE HAD NO IDEA WHEN PEOPLE MIGHT BE CALLED BACK 9301210058 930121 DEEPENING HATREDS EVEN TALK OF PEACE DIVIDES SERBS RAISES RANCOR AMONG THEM SOME VOW TO DEFEND HOMES WHILE THEIR PARLIAMENT IN BOSNIA VOTES UN PLAN LIVE WITH MUSLIMS NEVER BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL ZVORNIK BOSNIAHERZEGOVINA TO THE SERBIAN MOURNERS TRAMPING THROUGH THE MUD AROUND NEWLY DUG GRAVES THE PROSPECT OF PEACE IS MORE TERRIFYING THAN THE THREAT OF MUSLIM ARTILLERY IN THE SURROUNDING HILLS A DAUGHTER KNEELS TO LAY FLOWERS ON THE GRAVE OF HER FATHER SHOT THROUGH THE HEART BY A MUSLIM SNIPER PEACE IN BOSNIA AS CURRENTLY CONTEMPLATED WOULD TURN THE SOIL EMBRACING HER FATHER BACK TO MUSLIM CONTROL AND SHE WILL HAVE NONE OF IT IF THIS IS WHAT PEACE WILL BRING WE WILL CONTINUE THE WAR SAYS BORKA LAZAREVIC CURSING A PLAN BROKERED BY THE UNITED NATIONS AND EUROPEAN COMMUNITY THAT WOULD DIVIDE BOSNIA INTO 10 AUTONOMOUS PROVINCES PARTLY ALONG ETHNIC LINES AND WOULD PUT THE ZVORNIK REGION UNDER THE MUSLIMS SWEARING ON HER FATHER'S GRAVE SHE VOWS WE WILL FIGHT AS LONG AS WE LIVE FOR THIS LAND TO REMAIN SERBIAN THE BLASTS FROM AN 18GUN SALUTE OVER THE NEARBY GRAVES OF TWO FALLEN SOLDIERS STARTLES HER SISTER ANDJA EVERY DAY WE BURY SOME MORE ANDJA SAYS WEEPING FOR NINE MONTHS WE HAVE BEEN FIGHTING THE MUSLIMS IF PEACE MEANS THIS BECOMES A MUSLIM AREA I WILL BLOW UP MY HOUSE WITH US IN IT EVEN THOUGH THE FIGHTING HAS DEEPENED AGEOLD ANIMOSITIES INTO SUCH PROFOUND HATRED THE PARLIAMENT REPRESENTING THE SERBS IN BOSNIA MEETING YESTERDAY IN A SMALL MOUNTAIN VILLAGE NEAR SARAJEVO RATIFIED THE UN PLAN AFTER HOURS OF ACRIMONIOUS DEBATE HOPING TO STAVE OFF FURTHER ECONOMIC SANCTIONS AND THE THREAT OF WESTERN MILITARY INTERVENTION SERB LEADERS SWALLOWED HARD AND ACCEPTED A CONSTITUTIONAL FRAMEWORK THAT TREATS BOSNIA AS A SINGLE BUT DECENTRALIZED STATE WHILE STILL INSISTING ON FUTURE NEGOTIATIONS OVER THE BORDERS OF THE PROVINCES RADOVAN KARADZIC THE BOSNIAN SERB LEADER NAMED BY THE US AS A POTENTIAL WARCRIMES SUSPECT SAYS THE DEAL REPRESENTS THE ONLY HOPE FOR THE WAR TO END BUT IT IS A SLIM HOPE THE WAR LAUNCHED BY SERBIAN CROATIAN AND MUSLIM POLITICIANS DRIVEN BY PERSONAL AMBITION AND TERRITORIAL CRAVING HAS CAREENED TOO FAR OUT OF CONTROL TO BE STOPPED BY PROCLAMATIONS OF EITHER THOSE SAME POLITICIANS OR INTERNATIONAL MEDIATORS THE DIVISIVE VOTE IN PARLIAMENT AND THE BITTER POPULAR RESISTANCE TO THE PEACE PLAN ILLUSTRATE THAT THE EMOTIONS UNCORKED BY THE FIGHTING CAN'T BE PUT BACK INTO THE BOTTLE AND EVEN RAISE THE POSSIBILITY OF SERBS SLIDING INTO CIVIL WAR AMONG THEMSELVES IF MANY OF THEM REFUSE TO ACCEPT THE EVENTUAL SETTLEMENT YOU LOOK AT ALL THE GRAVES AND SEE THERE ARE TOO MANY WOUNDS THAT WILL NEVER HEAL SAYS BOZIDAR DJOKIC WANDERING ABOUT THE ZVORNIK CEMETERY LIKE A GRIM REAPER OUTFITTED IN A CAMOUFLAGE UNIFORM AND FLAK JACKET WITH A RIFLE INSTEAD OF A SCYTHE SLUNG OVER HIS SHOULDER THE ONLY SOLUTION IS TO HAVE TOTALLY CLEANSED AREAS BECAUSE THERE IS NO CHANCE FOR US TO LIVE TOGETHER AGAIN THUS THE WAR THAT LEFT THE BUSH ADMINISTRATION TOO PERPLEXED TO ACT DECISIVELY LOOMS DARKLY OVER PRESIDENT CLINTON AS HE ASSUMES OFFICE IN THIS CONFLICT OF STUPEFYING INTENSITY AND BRUTALITY EVEN THE PROSPECT OF PEACE SPARKS FIGHTING ONE WEEK AFTER THE THREE WARRING SIDES CONDITIONALLY ACCEPTED THE UN PEACE PROPOSALS THE MERCILESS SERBIAN SIEGE OF SARAJEVO CONTINUES UNABATED CROATIANS AND MUSLIMS ERSTWHILE ALLIES ARE FIGHTING ONE ANOTHER AS THE CROATIANS SEEK TO LOCK IN TERRITORIAL GAINS AND MUSLIM GUNNERS ALONG THE DRINA RIVER HERE THRICE LAUNCHED MORTAR ATTACKS INTO SERBIA ITSELF THEY HOPED TO PROVOKE A SERBIAN WITHDRAWAL FROM THE PEACE TALKS AND PROMPT WESTERN INTERVENTION WHICH MANY MUSLIMS SEE AS THE ONLY WAY TO DRIVE THE SERBS FROM THE 70 OF BOSNIA THEY NOW CONTROL THE US AND ITS NORTH ATLANTIC TREATY ORGANIZATION ALLIES COMPLETED WORK LAST WEEK ON MILITARY PLANS FOR ENFORCING A NOFLY ZONE OVER BOSNIA IF ASKED TO DO SO BY THE UN THESE PLANS INCLUDE USING WESTERN PLANES TO KEEP THE SERBS GROUNDED OR TO ESCORT THEM OUT OF THE ZONE DAMAGING SERBIAN AIRFIELDS AND SHOOTING DOWN SERBIAN PLANES CONTINUED FIGHTING WILL SURELY INCREASE THE PRESSURE TO ACT ON THE PLANS INDEED EVEN AS THEY TALK PEACE SERBIAN LEADERS ARE PREPARING FOR A SHOWDOWN WITH THE WEST AND A WIDENING WAR SERBIAN PRESIDENT SLOBODAN MILOSEVIC THE MAN MOST WIDELY BLAMED BY THE WEST FOR PROPAGATING THE WAR ENDORSES THE UN PLAN BUT ALSO INSISTS ON CREATION OF A GREATER SERBIA THAT WOULD INCLUDE VAST AREAS OF BOSNIA AND CROATIA THUS WHILE THE BOSNIAN SERB PARLIAMENT'S VOTE MAY TEMPORARILY STALL OUTSIDE INTERVENTION SERBIA REMAINS ON A COLLISION COURSE WITH THE WEST WHITE JET STREAMS CRISSCROSS THE BLUE WINTER SKY OVER SERBIA AS MIG FIGHTERS OF THE YUGOSLAV AIR FORCE PRACTICE DOGFIGHTS AND IN CENTRAL SERBIA THE YUGOSLAV ARMY NOW ALMOST PURELY SERB CARRIES OUT HIGHLY PUBLIC MANEUVERS EVEN TROTTING OUT LONGRANGE SURFACETOSURFACE MISSILES THAT ARMY COMMANDERS SAY ARE TRAINED ON VIENNA THE MESSAGE DESIGNED TO REASSURE SERBS AND RATTLE THE WEST IS THAT SERBIA IS READY TO DO BATTLE SHOULD NATO FORCES ATTACK SERBIAN POSITIONS IN BOSNIA OR SERBIA ITSELF IF WE ARE GOING TO BE ATTACKED WE WILL DEFEND OURSELVES IMMEDIATELY SAYS AIR FORCE MAJ ZORAN KOVACEVIC THE WORLD MUST KNOW THAT WE ARE PREPARED THE SERBIAN SHOW OF FORCE COINCIDES WITH A MUCHBALLYHOOED CELEBRATION OF THE 80TH ANNIVERSARY OF THE SERBIAN AIR FORCE MIHAILO PETROVIC PICTURED ON POSTERS RAKISHLY STANDING IN FRONT OF HIS BIWING PROPELLER PLANE HAS BECOME A NEW NATIONAL HERO HONORED AS THE WORLD'S FIRST AIRWAR CASUALTY HE CRASHED DURING A RECONNAISSANCE MISSION OVER TURKISH POSITIONS IN THE 1913 BALKAN WAR PILOTS FROM THE ALLIED FRENCH AND RUSSIAN FORCES REFUSED TO TAKE OFF THAT DAY BECAUSE OF BAD WEATHER AND HE WENT UP ALONE THAT IS OUR SPIRIT SAYS MAJ KOVACEVIC SMILING BEHIND A DARK MUSTACHE WE ARE NOT AFRAID OF A FIGHT EVEN CIVILIANS ARE BEING PREPARED TWO WEEKS AGO RESIDENTS OF APARTMENT BLOCKS NEAR THE MAIN ARMY HEADQUARTERS AND BARRACKS IN BELGRADE OPENED THEIR MAIL TO FIND AN ALARMING LETTER FROM THE LOCAL CIVILDEFENSE COUNCIL THE LETTER ON HOW TO ACT IN CASE OF AIR ATTACK TOLD THEM OF THE ALARM SIGNALS STRONGLY SUGGESTED THAT THEY CLEAR THEIR BASEMENTS AND STORE UP ESSENTIALS SUCH AS BATTERIES AND FOOD AND URGED THEM TO BUY RADIOLOGICAL BIOLOGICAL AND CHEMICAL PROTECTION GEAR THE SERBS WELLVERSED IN A NATIONAL HISTORY STEEPED IN SUFFERING REACTED WITH THEIR USUAL BRAVADO MOST THREW THE LETTER AWAY OTHERS LAUGHED SAYING NO ONE HAS ENOUGH FOOD TO PUT IN STORAGE BECAUSE OF THE INTERNATIONAL ECONOMIC SANCTIONS THE LETTER SAID GAS MASKS ARE AVAILABLE AT A SHOP CALLED VATROSPREM THERE FIVE EMPLOYEES LOUNGE BEHIND THEIR DESKS DRINKING COFFEE AND BEER HAVEN'T SOLD ANYTHING TO CIVILIANS IN THE LAST COUPLE OF WEEKS ONE OF THEM SAYS THEY WOULDN'T BE MUCH GOOD ANYWAY IF WE'RE BOMBED A COLLEAGUE ON HIS WAY OUT THE DOOR WITH THREE EMPTY BEER BOTTLES LAUGHS DERISIVELY AND SNORTS WHO'S AFRAID OF BOMBS BENEATH THE BRAVADO THOUGH THERE IS AN INCREASING DISQUIET PARTICULARLY AS BELGRADE TELEVISION SHOWS THE USLED BOMBING OF IRAQ ON THE SERBIAN NEW YEAR'S EVE JAN 13 THE VERY NIGHT THAT THE BOMBS WERE FALLING SOBERMINDED SERBS WONDERED COULD BELGRADE BE NEXT RECALLING THAT THE HEAVIEST NAZI BOMBING OF THE CITY DURING WORLD WAR II OCCURRED ON THE SERBIAN NEW YEAR ONE REVELER ONLY HALFJOKINGLY ASKED AN AMERICAN GUEST DO YOU HAVE A SURPRISE FOR US TONIGHT SINCE THE YUGOSLAV CIVIL WAR BEGAN IN MID1991 IN SLOVENIA AND CROATIA A CROSS WITH FOUR SERBIAN CYRILLIC S'S IN THE CORNERS HAS BECOME AS UBIQUITOUS AS THE WORLD WAR II KILROY WASHERE GRAFFITI IT MEANS ONLY UNITY SAVES THE SERBS BUT NOW THE PRESSURE TO MAKE PEACE IS THROWING THE SERBS INTO DANGEROUS DISARRAY WITH ARTILLERY FIRE RAGING IN THE BACKGROUND A SERB SOLDIER NEAR THE BOSNIAN TOWN OF BRATUNAC DRAWS A FINGER ACROSS HIS THROAT KARADZIC AND MILOSEVIC CAN SIGN WHATEVER PAPERS THEY WANT BUT IT WILL BE OVER OUR DEAD BODIES HE SAYS WHAT HAVE WE BEEN FIGHTING ABOUT ALL THESE MONTHS UNDER THE UN PLAN BRATUNAC ABOUT 20 MILES SOUTH OF ZVORNIK WOULD ALSO FALL UNDER MUSLIM CONTROL KARADZIC IS FROM SARAJEVO HE DOESN'T KNOW ANYTHING ABOUT OUR LAND SAYS A SECOND SOLDIER A MECHANICALENGINEERING STUDENT BEFORE THE WAR OUR GRAVES ARE HERE OUR CHURCHES OUR HOUSES YOU HAVE TO LIVE HERE TO KNOW THAT THE PARLIAMENT CAN DECIDE WHAT IT WANTS BUT WE WILL FIGHT UNTIL WE'RE ALL DEAD ANOTHER FORMER STUDENT NOW TOTING A RIFLE PLEADS FOR UNDERSTANDING FROM AN AMERICAN HOW WOULD YOU LIKE IT IF BUSH ASKED YOU TO MOVE SOMEWHERE ELSE BECAUSE HE WANTED TO GIVE YOUR LAND TO YOUR ENEMY SADDAM HE ASKS IT IS THE SAME IF KARADZIC GIVES OUR LAND TO THE MUSLIMS ACROSS THE DRINA RIVER IN THE SERBIAN TOWN OF LJUBOVIJA A GROUP OF SERB REFUGEES MAINLY WOMEN AND CHILDREN STIR FROM THEIR BEDS WHEN THE PROSPECT OF PEACE IS ANNOUNCED BUT AFTER IT TURNS OUT THAT MOST OF THEIR VILLAGES WILL BE IN MUSLIM AREAS THEY ERUPT IN A CACOPHONY OF ANGRY DEBATE LIKE THE FURIES IN A GREEK DRAMA IS KARADZIC NOW FOR THE MUSLIMS ASKS VINKA LAZIC A 69YEAROLD WIDOW HOW CAN HE DO THAT SHOUTS ANOTHER VOICE IT'S IMPOSSIBLE SERBS WOULD NEVER DO SOMETHING LIKE THAT A THIRD WOMAN VOWS TO THROW HERSELF INTO THE ICY DRINA IF HER VILLAGE GOES TO THE MUSLIMS WE WON'T LIVE WITH THEM SHE CRIES THE STRAINS OF PEACE ALONG WITH THE PRESSURE OF SANCTIONS UNEMPLOYMENT IS RIFE AND INFLATION IS RUNNING ABOUT 6 A DAY ARE STRENGTHENING THE ULTRANATIONALIST SERBIAN RADICAL PARTY WHICH MADE BIG GAINS IN LAST MONTH'S PARLIAMENTARY ELECTIONS AND IS NOW SERBIA'S SECONDBIGGEST PARTY BEHIND MR MILOSEVIC'S SOCIALISTS THE FORMER COMMUNISTS VOJISLAV SESELJ THE RADICALS' LEADER CONTROLS A PARAMILITARY GROUP KNOWN AS THE WHITE EAGLES AND HAS BEEN NAMED BY THE US STATE DEPARTMENT AS A PRIME SUSPECT IN ANY FUTURE WARCRIMES TRIALS PICTURES OF MR SESELJ A MORE STRIDENT ADVOCATE OF A GREATER SERBIA THAN EVEN MR MILOSEVIC ARE ON WALLS AND IN SHOP WINDOWS ALL OVER SERBIA AND SERBIANHELD REGIONS OF BOSNIA IN LJUBOVIJA A HUGE POSTER OF HIM IS PLASTERED ABOVE A RAILROAD TUNNEL AND THE WHITE EAGLES BAR IS THE MOST POPULAR PLACE IN TOWN ANY ATTEMPT BY MR MILOSEVIC TO SILENCE THE RADICALS WHOM HE ONCE USED TO WHIP UP NATIONALIST FERVOR COULD TRIGGER CLASHES THAT WOULD PIT SERB AGAINST SERB CIVIL WAR WITHIN SERBIA IS A REAL POSSIBILITY A SERIOUS THREAT SAYS VLADETA JANKOVIC A LEADER OF THE DEMOCRATIC OPPOSITION OF SERBIA WHICH OPPOSES THE WAR AND ADVOCATES A RETURN TO DEMOCRACY FOR MILOSEVIC SESELJ AND THE RADICAL PARTY ARE A MONSTER OUT OF CONTROL ALTHOUGH MR MILOSEVIC WOULD BE UNWELCOME IN MANY PARTS OF BOSNIA MR SESELJ WAS WARMLY TAKEN ON A TOUR OF THE FRONT WHEN HE VISITED BRATUNAC AFTER A RECENT MUSLIM ATTACK I HOPE THE SERBS OF BOSNIA WILL SAY TO THE WORLD LOUD AND CLEAR THAT THEY ARE THE MASTERS OF THEIR OWN DESTINY HE SAYS RIDICULING AS TRAITORS TO SERBIA THOSE WHO SUPPORT THE UN PLAN THE BOSNIAN SERBS OF ZVORNIK HAVE ALREADY SPOKEN BEFORE THE WAR MUSLIMS WERE IN THE MAJORITY LAST SPRING A HUGE SERBIAN OFFENSIVE DROVE MOST OF THEM OUT A SIGN AT THE ENTRANCE TO TOWN SAYS WELCOME TO ZVORNIK BELOW SOMEONE ADDED WELCOME TO SERBIA 9301210057 930121 POLITICS & POLICY HILLARY CLINTON TO LEAD GROUP ON HEALTH CARE NEW FIRST LADY IS EXPECTED TO OVERSEE DRAFTING OF OVERHAUL PROPOSAL BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HILLARY CLINTON IS EXPECTED TO TAKE CHARGE OF PRESIDENT CLINTON'S HEALTH CARE OVERHAUL PROPOSAL ACCORDING TO TRANSITION OFFICIALS THE CRITICAL ROLE IN FASHIONING ONE OF MR CLINTON'S TOP PRIORITIES WOULD BE UNPRECEDENTED FOR A FIRST LADY ON MONDAY IN WASHINGTON MRS CLINTON WAS A LEADING PARTICIPANT AT A MEETING OF SEVERAL OF HER HUSBAND'S TOP ADVISERS TO DISCUSS THE TIMING AND PROCESS OF FORMULATING THE HEALTH PROPOSAL ACCORDING TO A PERSON FAMILIAR WITH THE SESSION THE DECISION TO GIVE HER OVERSIGHT OF HEALTH CARE STEMS PARTLY FROM THE PRESIDENT'S DISSATISFACTION WITH CONCLUSIONS OF SOME OF THE HEALTH ADVISERS ON HIS TRANSITION TEAM AT A JAN 11 MEETING IN LITTLE ROCK ARK WHICH INCLUDED TOP HEALTH AIDES JUDITH FEDER AND STUART ALTMAN MR CLINTON WAS ANGERED WHEN HE WAS TOLD THAT HIS HEALTH PROPOSAL WASN'T LIKELY TO SAVE MUCH MONEY THE PRESIDENT'S PRESS SECRETARY DEE DEE MYERS SAID SHE WAS NOT AWARE THAT MRS CLINTON WOULD HAVE A FORMAL ROLE IN THE ADMINISTRATION'S HEALTH POLICY BUT OTHER OFFICIALS SAID SHE IS LIKELY TO LEAD AN INTERAGENCY TASK FORCE THAT WILL DRAFT THE HEALTH PROPOSAL OFFICIALS SAID THE WHITE HOUSE MIGHT NOT OFFICIALLY DESIGNATE MRS CLINTON'S ROLE ALTHOUGH THAT IS STILL AN OPTION THEY DESCRIBED HER POSITION AS AKIN TO CHAIRWOMAN OF A COMPANY WITH SENIOR WHITE HOUSE POLICY ADVISER IRA MAGAZINER RUNNING ITS DAYTODAY OPERATIONS AS A CHIEF OPERATING OFFICER CLINTON AIDES SAY MR MAGAZINER WHO HAS STUDIED WAYS TO CUT HEALTH CARE COSTS IN HIS HOME STATE OF RHODE ISLAND BELIEVES THAT SUBSTANTIAL SAVINGS ARE POSSIBLE NATIONALLY OTHER LIKELY MEMBERS OF THE TASK FORCE OFFICIALS SAID ARE DONNA SHALALA WHO IS EXPECTED TO BE CONFIRMED TODAY AS SECRETARY OF HEALTH AND HUMAN SERVICES ALICE RIVLIN MR CLINTON'S CHOICE FOR DEPUTY DIRECTOR OF THE WHITE HOUSE OFFICE OF MANAGEMENT AND BUDGET AND ANOTHER SENIOR DOMESTIC POLICY ADVISER CAROL RASCO MRS CLINTON HAS LITTLE DIRECT EXPERIENCE IN THE HEALTH CARE FIELD BUT SHE HAS LONG BEEN ACTIVE IN CHILDREN'S HEALTH AND WELFARE ISSUES AS THE PRESIDENT'S CLOSEST ADVISER SHE WOULD BE VIEWED BY OTHERS AT THE TABLE AS HIS STANDIN HER INVOLVEMENT ALSO WOULD BE A CLEAR SIGN THAT HEALTH CARE IS OF THE HIGHEST PRIORITY FOR THE NEW PRESIDENT A PROMINENT LAWYER AND FORMER CHAIRWOMAN OF THE CHILDREN'S DEFENSE FUND MRS CLINTON HAS PLAYED KEY ROLES IN HER HUSBAND'S ADMINISTRATIONS BEFORE IN THE EARLY 1980S MR CLINTON APPOINTED HER HEAD OF THE TASK FORCE THAT COMPILED EDUCATION LEGISLATION THAT BECAME A HALLMARK OF HIS TENURE AS ARKANSAS GOVERNOR IF MRS CLINTON WERE OFFICIALLY DESIGNATED AS HEAD OF THE TASK FORCE SOME CRITICS MIGHT CHARGE THAT THE ASSIGNMENT VIOLATED A LAW PASSED IN RESPONSE TO JOHN KENNEDY'S APPOINTMENT OF HIS BROTHER ROBERT AS ATTORNEY GENERAL THAT PROHIBITS ANY PUBLIC OFFICIAL FROM APPOINTING A RELATIVE TO ANY AGENCY IN WHICH THE OFFICIAL IS SERVING OR OVER WHICH HE EXERCISES JURISDICTION OR CONTROL BUT EXPERTS GENERALLY DISMISS THE NOTION THAT AN UNPAID JOB WOULD RUN AFOUL OF THE STATUTE ROSALYNN CARTER HEADED A PRESIDENTIAL COMMISSION ON MENTAL HEALTH IN HER HUSBAND'S ADMINISTRATION MR CLINTON MADE REFORM OF THE US HEALTH SYSTEM A CENTERPIECE OF HIS CAMPAIGN HE HAS PLEDGED TO UNVEIL IN THE FIRST 100 DAYS OF HIS ADMINISTRATION A PROPOSAL TO GUARANTEE NATIONWIDE ACCESS TO MEDICAL CARE AND SLOW THE RISE IN HEALTH COSTS BUT DETAILS OF THE PROPOSAL HAVE SPLIT MR CLINTON'S ADVISERS AND MRS CLINTON WILL BE IN THE POSITION OF RESOLVING SUCH CRITICAL QUESTIONS AS CAN SAVINGS IN HEALTH CARE BE USED TO REDUCE THE DEFICIT SHOULD SAVINGS BE USED TO EXPAND COVERAGE FOR THE POOR SHOULD SOME EMPLOYERPROVIDED HEALTH BENEFITS BE TAXED TO BRING MARKET INCENTIVES TO THE HEALTH SYSTEM HOW MUCH SHOULD THE GOVERNMENT REGULATE THE HEALTH INDUSTRY MRS CLINTON IS PERHAPS THE ONLY PERSON OTHER THAN THE PRESIDENT WITH THE CLOUT TO SETTLE SUCH ISSUES CURRENTLY ABOUT 35 MILLION US CITIZENS DON'T HAVE HEALTH INSURANCE OF ANY KIND EVEN THOUGH THE COUNTRY SPENDS MORE THAN 800 BILLION A YEAR ON MEDICAL CARE FAR MORE PER CAPITA THAN ANY OTHER NATION TO ADDRESS THESE PROBLEMS MR CLINTON WANTS TO SET UP HEALTH INSURANCE PURCHASING COOPERATIVES THROUGHOUT THE COUNTRY REPRESENTING BUSINESSES OF ALL SIZES AS WELL AS INDIVIDUALS THE BUYING POWER OF THESE LARGE GROUPS WOULD COMPEL DOCTORS AND HOSPITALS TO BAND INTO NETWORKS TO COMPETE FOR THEIR BUSINESS ON PRICE AND QUALITY EMPLOYERS WOULD BE REQUIRED TO PROVIDE HEALTH INSURANCE TO WORKERS AND THE GOVERNMENT WOULD FINANCE COVERAGE FOR THE UNEMPLOYED IN ADDITION MR CLINTON WANTS TO REWRITE INSURANCE LAWS TO REQUIRE COMPANIES TO COVER ANYONE REGARDLESS OF MEDICAL HISTORY ADVISERS SAY HE IS ALSO COMMITTED TO SETTING A CEILING ON NATIONAL HEALTH EXPENDITURES BOTH PUBLIC AND PRIVATE BUT THE MEANS OF ENFORCING SUCH A CAP HAVE YET TO BE WORKED OUT RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9301210056 930121 BUSINESS BRIEF MERCK & CO NEWDRUG APPLICATION FILED FOR SCHIZOPHRENIA MEDICINE MERCK & CO SAID IT FILED A NEW DRUG APPLICATION WITH THE FOOD AND DRUG ADMINISTRATION FOR ROXIAM A TREATMENT FOR SCHIZOPHRENIA MERCK WHICH IS BASED IN RAHWAY NJ HAD ACQUIRED US RIGHTS TO ROXIAM THE BRAND VERSION OF REMOXIPRIDE FROM SWEDISH PHARMACEUTICAL COMPANY AB ASTRA THE DRUG CURRENTLY IS MARKETED BY ASTRA IN VARIOUS COUNTRIES MAINLY IN EUROPE A MERCK SPOKESMAN SAID UNDER A 1982 AGREEMENT MERCK AND ASTRA AGREED TO EVENTUALLY FORM A JOINT VENTURE COMPANY IN THE US AFTER US REVENUE FROM CERTAIN ASTRA DRUGS REACHES A SPECIFIED LEVEL MERCK SAID IT CREATED THE ASTRA/MERCK GROUP LAST YEAR PRELIMINARY TO FORMING THE JOINT VENTURE WITH ASTRA WHICH IT EXPECTS TO LAUNCH AS AN INDEPENDENT COMPANY IN 1995 THE ASTRA/MERCK GROUP CURRENTLY MARKETS ASTRA'S PRILOSEC DRUG FOR ULCERS AND PLENDIL FOR HIGH BLOOD PRESSURE 9301210055 930121 WORLD MARKETS TOKYO EQUITIES SINK ON TECHNICAL SELLING PRICES GET LATE LIFT IN LONDON FRANKFURT'S RALLY ENDS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES SANK 17 WEDNESDAY ON SELLING BY ARBITRAGERS AND INVESTMENT TRUSTS LONDON STOCKS FINISHED HIGHER ON A LATE BUYING SPREE FRANKFURT'S FOURSESSION RALLY ENDED AND PRICES ENDED MIXED ON THURSDAY THE NIKKEI INDEX FELL 9371 POINTS TO CLOSE THE MORNING SESSION AT 1641647 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 200 MILLION SHARES COMPARED WITH 2027 MILLION A DAY EARLIER LOSERS OUTNUMBERED GAINERS 566327 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH ADDED 900 POINTS TUESDAY FELL 999 TO 126608 IN THE TECHNICALLY DOMINATED DEALINGS THE NIKKEI FELL STEADILY THROUGHOUT THE SESSION FROM THE HIGH OF 1684178 WHICH HAD BEEN REACHED MINUTES AFTER THE OPENING PARTICIPANTS IGNORED COMMENTS BY OFFICIALS OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY INDICATING THAT MORE MEASURES INCLUDING A LENDINGRATE CUT COULD BE IN THE PIPELINE TO BOOST THE AILING ECONOMY SUCH TALK COMMON RECENTLY DIDN'T OFFER ANY INCENTIVES TO THE MARKET WHICH IS AWAITING CONCRETE ACTION INSTITUTIONAL AND INDIVIDUAL INVESTORS WERE EXPECTED TO REMAIN ON THE SIDELINES UNTIL NEW INCENTIVES EMERGE IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 111 POINTS TO 27487 WHICH ALSO WAS THE INTRADAY HIGH THE FT 30STOCK INDEX ADVANCED 92 POINTS TO 21339 VOLUME WAS 5993 MILLION SHARES COMPARED WITH 557 MILLION SHARES A DAY EARLIER AFTER LONDON PRICES LANGUISHED FOR MOST OF THE SESSION THE LATE RALLY EMERGED ON TAKEOVER SPECULATION AND ON RENEWED EXPECTATIONS FOR A CUT IN BRITISH BASE LENDING RATES FOLLOWING WEAKERTHANEXPECTED RETAIL SALES DATA FOR DECEMBER BUT EVEN HOPES FOR AN EASING IN MONETARY POLICY TO HELP BRITAIN'S ECONOMY WERE TEMPERED BY WORRIES THAT THE BUDGET COMING IN THE SPRING MIGHT INCLUDE SOME INCREASES IN TAXES OR CUTS IN TAX ALLOWANCES IN FRANKFURT THE DAX 30STOCK INDEX FELL 395 POINTS TO 157488 AS THE MARKET CONSOLIDATED FOLLOWING RECENT GAINS PLAYERS ALSO EXPRESSED SOME DISAPPOINTMENT ABOUT THE GERMAN GOVERNMENT'S PROPOSED SOLIDARITY PACT INVOLVING UNIONS AND OTHER SECTORS OF THE ECONOMY TO ENABLE FINANCING OF THE EASTERN REGION'S RECONSTRUCTION THE OPPOSITION SOCIAL DEMOCRATS THREATENED TO BLOCK THE PACT IN THE BUNDESRAT THE UPPER HOUSE OF PARLIAMENT WHICH THEY CONTROL AND THE PROPOSALS WEREN'T EXPECTED TO SATISFY THE GERMAN CENTRAL BANK WHICH HAS INDICATED IT WANTS TIGHTER SPENDING BEFORE IT CAN CUT INTEREST RATES ELSEWHERE IN EUROPE PARIS STOCKS SLID REVERSING A BULL RUN THAT STARTED JAN 12 PRICES REACTED IN PART TO POOR EARNINGS AND INVESTORS EXPRESSED THEIR DISAPPROVAL OF ELF SANOFI'S PLANNED ACQUISITION OF A CONTROLLING STAKE IN THE COUTURE HOUSE YVES SAINT LAURENT AT A PRICE THE MARKET DEEMED TOO HIGH ELF SANOFI SHARES PLUNGED 117 FRENCH FRANCS OR 11 TO 970 FRANCS 17846 AMSTERDAM PRICES ROSE TRACKING LONDON STOCKS AND REACTING POSITIVELY TO A PLANNED DUTCH CORPORATE MERGER BETWEEN THE BEVERAGE COMPANY BOLS AND THE FOOD COMPANY WESSANEN MILAN STOCKS WEAKENED IN SELECTIVE TRADING AS INVESTORS FOCUSED ON MINOR BANKS AND OTHER SHARES THAT WERE IGNORED IN THE MARKET'S RECENT RALLY MADRID SHARE PRICES SURGED IN HEAVY TRADING BOOSTED BY A CUT IN YIELDS ON SPANISH TREASURY BILLS WHICH ENCOURAGED EXPECTATIONS OF AN IMMINENT EASING IN INTEREST RATES AND FUELED BUYING IN INTEREST RATESENSITIVE STOCKS IN THE UTILITIES BANKING AND TELECOMMUNICATIONS SECTORS BRUSSELS SHARES GAINED LED BY BLUE CHIPS AMONG BIG ASIAN AND PACIFIC BOURSES SYDNEY PRICES RALLIED BUOYED BY NEWS OF HIGHER CORPORATE PROFITS AND A SURGE IN STOCKINDEX FUTURES IN SINGAPORE WITH PRICES AT HISTORIC HIGHS AND A LONG HOLIDAY WEEKEND COMING PLAYERS SWITCHED INTO LOW GEAR AND PRICES ROSE MODERATELY HONG KONG SHARES DROPPED A BIT IN THIN TRADING AS LOCAL SELLING DOMINATED AHEAD OF THE CHINESE NEW YEAR HOLIDAYS WHICH START FRIDAY SEOUL PRICES ENDED SLIGHTLY HIGHER AFTER LOSING MUCH OF THEIR EARLY GAINS TO LATE SELLING THE SOUTH KOREAN MARKET OPENED HIGHER AND SCORED MORE INCREASES AFTER THE CENTRAL BANK'S REDISCOUNT RATES WERE CUT IN A BID TO LIFT THE FLAGGING ECONOMY WHICH BOOSTED INVESTORS' SENTIMENT ON HOPES GOVERNMENT POICY WOULD SHIFT TO PROMOTING GROWTH FROM EMPHASIZING STABILITY MANILA STOCKS RALLIED LED BY THE COMMERCIAL AND INDUSTRIAL SECTOR WELLINGTON EQUITIES FELL SHARPLY AGGRAVATED BY THIN TURNOVER AS OVERSEASBASED INVESTORS STAYED OUT OF THE MARKET BECAUSE OF RECENT VOLATILITY IN NEW ZEALAND'S CURRENCY AND DEBT MARKETS AMONG CORPORATE DEVELOPMENTS IN TOKYO MAZDA MOTOR FELL 9 YEN OR 22 TO 406 YEN 324 THE AUTO MAKER WHICH LAST NOVEMBER PREDICTED THE PARENT COMPANY'S PRETAX PROFIT FOR THE YEAR ENDING MARCH 31 WOULD DROP 14 FROM THE YEAREARLIER 1967 BILLION YEN 1568 MILLION REVISED THAT ESTIMATE TO A 69 PLUNGE TO 6 BILLION YEN CITING CHIEFLY WEAKNESS IN DOMESTIC SALES MAZDA ALSO LOWERED ITS PROJECTION FOR DOMESTIC VEHICLE SALES TO 475000 UNITS FROM 500000 THE REVISION REPRESENTS A 13 DECLINE FROM A YEAR EARLIER JAPAN AIR LINES DROPPED 13 OR 22 TO 571 AFTER THE CARRIER ANNOUNCED TUESDAY THAT IT WOULDN'T PAY DIVIDENDS IN THE FISCAL YEAR ENDING MARCH 31 IN LONDON STANDARD CHARTERED BANK ROSE 28 PENCE TO 630 PENCE 976 AND LLOYDS BANK WAS STEADY AT 499 AMID SPECULATION THAT LLOYDS MIGHT BE PREPARING TO LAUNCH A TAKEOVER BID FOR STANDARD CHARTERED LLOYDS INDICATED IN THE PAST IT WISHED TO ACQUIRE ANOTHER MAJOR COMMERCIAL BANK IN PARIS TRADING IN SOCIETE LYONNAISE DES EAUXDUMEZ WAS SUSPENDED YESTERDAY AFTERNOON AFTER THE STOCK SANK 56 TO 435 FRENCH FRANCS 8003 THE WATER DISTRIBUTION MUNICIPAL SERVICES AND CONSTRUCTION COMPANY SAID THAT IT WAS HURT BY THE CRISIS IN THE FRENCH REAL ESTATE AND CONSTRUCTION SECTORS LAST YEAR AND THAT ITS 1992 CONSOLIDATED PROFIT WOULD PLUMMET BETWEEN 65 AND 70 TO BETWEEN 350 MILLION AND 400 MILLION FRANCS FROM THE YEAREARLIER 117 BILLION FRANCS BUT THE COMPANY SAID THE DIVIDEND WOULD BE MAINTAINED AT 10 FRANCS A SHARE IN SYDNEY MIM HOLDINGS ROSE 2 CENTS TO 231 AUSTRALIAN DOLLARS US155 THE MINING COMPANY'S AFTERTAX OPERATING PROFIT FOR THE FIRST HALF ENDED DEC 31 INCREASED 24 TO A768 MILLION US516 MILLION AIDED BY THE AUSTRALIAN DOLLAR'S WEAKER EXCHANGE RATE HIGHER DOMESTIC GOLD SALES SOME HIGHER COAL SALES VOLUMES AND A HIGHER ZINC PRICE HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9301210054 930121 INTERNATIONAL MINEBEA NEGOTIATING WITH NIPPON STEEL FOR SALE OF CHIP UNIT TOKYO MINEBEA CO ONE OF THE WORLD'S LARGEST MAKERS OF BALL BEARINGS SAID IT IS NEGOTIATING THE SALE OF ITS SEMICONDUCTOR UNIT ONCE HAILED AS AN EXAMPLE OF JAPANESE INNOVATION IN MICROCHIP MANUFACTURE MINEBEA WOULDN'T CONFIRM A REPORT IN THURSDAY'S NIHON KEIZAI SHIMBUN THAT IT WILL SELL ITS GROUP'S 60 STAKE IN NMB SEMICONDUCTOR CO TO NIPPON STEEL CORP FOR ABOUT 30 BILLION YEN 2392 MILLION BUT BOTH MINEBEA AND NIPPON STEEL CONFIRMED THEY ARE IN NEGOTIATIONS OVER THE SALE OF NMB TRADING WAS HALTED IN NMB SHARES IN THE OVERTHECOUNTER MARKET EARLY THURSDAY NMB FOUNDED IN 1984 HAS GONE THROUGH A STUNNING DECLINE IN A FEW YEARS IT ONCE DOMINATED A HIGHPERFORMANCE NICHE IN THE MARKET FOR COMPUTER MEMORIES BY OFFERING CHIPS THAT WERE AN AVERAGE OF 30 TO 40 FASTER THAN ITS COMPETITORS' CHIPS BUT CHANGING MARKETS AND A FAILURE TO CUT COSTS CONSPIRED TO UNRAVEL NMB'S SUCCESS MUCH LARGER CHIP MAKERS STARTED MAKING FAST MEMORY CHIPS SQUEEZING NMB'S MARGINS MEANWHILE WORLD CHIP PRICES COLLAPSED TO AROUND 40 OF THEIR 1991 LEVEL AND NMB'S MANUFACTURING COSTS REMAINED HIGHER THAN THE INDUSTRY AVERAGE IN THE YEAR ENDED SEPT 30 NMB HAD A LOSS OF 124 BILLION YEN ON SALES OF 19 BILLION YEN 9301210053 930121 WEDNESDAY'S MARKETS STOCKS FALL 1404 POINTS BONDS EASE PROFITTAKING DRIVES BANKING ISSUES DOWN DOLLAR MOVES LOWER BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES FELL AS INVESTORS GAVE BILL CLINTON A COOL WELCOME AS THE NATION'S 42ND PRESIDENT BOND PRICES WERE OFF AND THE DOLLAR WEAKENED THE DOW JONES INDUSTRIAL AVERAGE DECLINED 1404 POINTS TO 324195 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX LOST 176 TO 43337 BUT THE NASDAQ COMPOSITE INDEX MANAGED TO EKE OUT A GAIN OF 063 TO 69744 IN THE BOND MARKET BUYERS SENT THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE BRIEFLY BELOW 730 BUT A WAVE OF SELLING IN THE AFTERNOON LEFT BOND PRICES LOWER WITH THE YIELD ON THE LONG BOND ENDING AT 733 ANALYSTS SAID THE EARLY BUYING LACKED CONVICTION AS MOST TRADERS TOOK A WAITANDSEE ATTITUDE TOWARD THE NEW PRESIDENT BUT THEY ADDED THAT WITH INFLATION UNLIKELY TO RISE SHARPLY IN THE NEXT FEW MONTHS THE OVERALL TREND IN LONGTERM INTEREST RATES REMAINS DOWN JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH SAID STOCK MARKET INVESTORS MAY LOSE ENTHUSIASM FOR MR CLINTON RATHER QUICKLY IF HE TURNS OUT TO BE AN OLD FASHIONED TAXANDSPEND DEMOCRAT REFERRING TO THE CLINTON ADMINISTRATION HE SAID WE'RE TALKING ABOUT PEOPLE WHO BELIEVE GOVERNMENT NEEDS TO BE INVOLVED IN MANY ASPECTS OF LIFE AND THAT'S NOT A POINT OF VIEW THAT SITS VERY WELL WITH FINANCIAL MARKETS MR SOLLOWAY SAID WITH STOCK PRICES ALREADY AT HIGH LEVELS THE MARKET IS RIPE FOR A DECLINE POSSIBLY AS MUCH AS 10 IN THE S&P AND A LITTLE MORE IN THE NASDAQ COMPOSITE I'M LOOKING FOR A CORRECTION EXTENDING A FEW MONTHS BEGINNING ANYTIME HE SAID BESIDES HIS WARINESS OF THE NEW ADMINISTRATION MR SOLLOWAY IS CONCERNED ABOUT THE SHARP RISE IN STOCK SALES BY COMPANY INSIDERS DURING THE PAST EIGHT WEEKS HE POINTED OUT THAT A LARGE PORTION OF THE SELLING CAME IN DECEMBER FOR TAX REASONS NONETHELESS HE ADDED IT IS A WORRYING TREND THAT INVESTORS SHOULD WATCH THE NEXT FEW WEEKS WILL BE INDICATIVE OF WHAT INSIDERS REALLY THINK MR SOLLOWAY SAID IF WE STILL SEE A HIGH RATE OF SELLING THEN WE CAN SAY WITH A CERTAIN AMOUNT OF CONFIDENCE THAT INSIDERS ARE NOT NEARLY AS ENTHUSIASTIC ABOUT THE MARKET AS THE PUBLIC IS WORLDWIDE STOCK PRICES FELL IN LATE NEW YORK TRADING THE DOW JONES WORLD STOCK INDEX WAS DOWN 034 TO 9159 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2677 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 974 ISSUES FELL AND 883 ROSE BOND PRICES EASED THE TREASURY'S 30YEAR ISSUE LOST MORE THAN A QUARTER OF A POINT OR MORE THAN 250 FOR EACH 1000 FACE AMOUNT THE DOLLAR WEAKENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16030 MARKS AND 12468 YEN COMPARED WITH 16110 MARKS AND 12545 YEN TUESDAY 9301210052 930121 BUSINESS BRIEF BOISE CASCADE CORP FOREST PRODUCTS FIRM POSTS WIDER LOSS FOR 4TH QUARTER BOISE CASCADE CORP POSTED A WIDER LOSS FOR THE FOURTH QUARTER BUT THE FOREST PRODUCTS CONCERN SAID THE LOSS WAS LESS THAN EXPECTED CITING A STRONG PERFORMANCE BY ITS BUILDING PRODUCTS BUSINESS DESPITE THE CONTINUED WEAKNESS OF PAPER PRICES BOISE SAID IT SAW EVIDENCE THAT THE PAPER MARKET HAD BOTTOMED OUT AND EXPECTS TO SEE QUARTERBYQUARTER IMPROVEMENTS THE BOISE IDAHO COMPANY HAD A NET LOSS OF 296 MILLION OR 97 CENTS A SHARE COMPARED WITH A LOSS OF 158 MILLION OR 51 CENTS A SHARE A YEAR EARLIER REVENUE FELL 6 TO 905 MILLION FROM 9632 MILLION FOR THE YEAR BOISE CASCADE HAD A NET LOSS OF 2275 MILLION OR 673 A SHARE COMPARED WITH A LOSS OF 795 MILLION OR 246 A SHARE IN 1991 THE 1992 FIGURE INCLUDED A 73 MILLION ACCOUNTING CHANGE IN RETIREMENT BENEFITS REVENUE FELL 59 TO 372 BILLION FROM 395 BILLION BOISE CASCADE SHARES ROSE 25 CENTS TO 21125 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9301210051 930121 BUSINESS BRIEF CINCINNATI BELL INC TELECOMMUNICATIONS FIRM POSTS FOURTHPERIOD LOSS CINCINNATI BELL INC REPORTED A LOSS FOR THE FOURTH QUARTER AS IT TOOK CHARGES AT ITS INFORMATION SYSTEMS UNIT AND FOR RETIRING SOME LONGTERM DEBT IN THE QUARTER THE CINCINNATI TELECOMMUNICATIONS COMPANY HAD A NET LOSS OF 14 MILLION OR FOUR CENTS A SHARE COMPARED WITH NET INCOME OF 163 MILLION OR 25 CENTS A SHARE IN THE YEAREARLIER PERIOD REVENUE INCREASED 45 TO 2852 MILLION CINCINNATI BELL SAID A CHARGE FOR THE EARLY RETIREMENT OF 75 MILLION IN LONGTERM DEBT REDUCED THE QUARTER'S EARNINGS BY THREE CENTS A SHARE ALSO PREVIOUSLY ANNOUNCED CHARGES RELATED TO CONSOLIDATION AND WRITEOFFS AT ITS CINCINNATI BELL INFORMATION SYSTEMS REDUCED EARNINGS BY 129 MILLION OR 21 CENTS A SHARE THE COMPANY'S CINCINNATI BELL INFORMATION SYSTEMS UNIT ALSO SAID IT IS IN DISCUSSIONS WITH SEVERAL TELECOMMUNICATIONS CARRIERS ABOUT SYSTEMS DEVELOPMENTS BUILT USING THE UNIT'S TECHNOLOGY EARLIER THIS WEEK THE UNIT REACHED AN AGREEMENT WITH CELLULAR TECHNICAL SERVICES CO SEATTLE TO JOINTLY MARKET AND DISTRIBUTE CERTAIN INFORMATION SYSTEMS TECHNOLOGY 9301210050 930121 LEISURE & ARTS BOOKSHELF MUSIC AND OTHER MYSTERIES BY JIM HOLT IF A LITERARY MAN PUTS TOGETHER TWO WORDS ABOUT MUSIC ONE OF THEM WILL BE WRONG THE LATE COMPOSER AARON COPLAND ONCE SAID HAPPILY ANTHONY STORR THE AUTHOR OF MUSIC AND THE MIND FREE PRESS 224 PAGES 2295 IS BOTH A LITERARY AND A SCIENTIFIC MAN SO HIS AVERAGE IS A BIT BETTER AND THAT IS NO SCANT PRAISE CONSIDERING THE KNOTTINESS OF THE QUESTION THIS BRITISH PSYCHIATRIST HAS CHOSEN TO GRAPPLE WITH WHY DO WE LISTEN TO MUSIC OR IN THE AUTHOR'S RATHER MORE ELABORATE FORMULATION HOW IS IT THAT AN ART WHICH PROMULGATES NO DOCTRINE WHICH PREACHES NO GOSPEL WHICH IS OFTEN ENTIRELY DISSOCIATED FROM VERBAL MEANING CAN YET BE EXPERIENCED AS MAKING SENSE OF LIFE IT IS HARD TO RESIST THE IDEA THAT EVEN THE PUREST OF INSTRUMENTAL MUSIC A LATE BEETHOVEN STRING QUARTET FOR INSTANCE COMMUNICATES SOME SORT OF EMOTIONAL MESSAGE TO THE LISTENER HOW ELSE COULD ABSTRACT PATTERNS OF SOUND FILL ONE WITH JOY OR MAKE ONE WEEP BUT TO EXPLAIN JUST HOW MUSIC DOES THIS IS EXCEEDINGLY VEXATIOUS PERHAPS CONJECTURES DR STORR IT HAS SOMETHING TO DO WITH THE ART'S LIKELY ORIGINS IN THE MELODIOUS COOINGS EXCHANGED BETWEEN MOTHER AND BABY IN THE FIRST YEAR OF LIFE MUSICAL ABSOLUTISTS OF COURSE WILL HAVE NONE OF THIS CRUDE TRAFFICKING IN EMOTIONS SITTING IN THE CONCERT HALL WITH SCORE IN LAP TRACKING THE INTRICATE DEVICES OF COUNTERPOINT THEY SCORN THE NOTION THAT THE PURPOSE OF MUSIC IS TO CONVEY THE COMPOSER'S UNDERSTANDING OF ANGUISH LUST RESIGNATION AS STRAVINSKY PUT IT MUSIC IS POWERLESS TO EXPRESS ANYTHING AT ALL BEYOND ITS OWN FORMAL SUBTLETIES CLEARLY SOME SORT OF SYNTHESIS OF THESE TWO OPPOSING VIEWS IS CALLED FOR AND DR STORR DRAWING ON PSYCHOLOGY ANTHROPOLOGY AND PHILOSOPHY AS WELL AS HIS OWN EXPERIENCE AS AN AMATEUR PERFORMER ENDEAVORS TO COME UP WITH ONE WRITING WITH GRACE AND CLARITY IF NOT A LOT OF HUMOR HE TOUCHES ON EVERYTHING FROM THE EVOLUTION OF THE WESTERN TONAL SYSTEM TO THE FREUDIAN THEORY OF MUSIC AS INFANTILE ESCAPISM TO THE DIFFERING ROLES OF THE RIGHT AND LEFT SIDES OF THE BRAIN IN PERCEIVING MUSIC ABOUT THE ONLY MUSICAL MYSTERY HE DOES NOT PLUMB IS WHY AS EM FORSTER ONCE OBSERVED CLASSICAL CONCERTS INVARIABLY DRAW SUCH UGLY AUDIENCES TO THE ANCIENTS THE SUBLIMEST MELODIES OF ALL WERE THOSE GENERATED BY HEAVENLY BODIES AS THEY MOVED THROUGH THEIR DIVINELY APPOINTED ROUNDS THE MUSIC OF THE SPHERES ONE WONDERS WHAT KIND OF SONIC CONTRIBUTION BLACK HOLES MAKE CERTAINLY THEY MUST PLAY THE DEVIL WITH THE TEMPO OF THE CELESTIAL SYMPHONY FOR TIME BEHAVES VERY ODDLY AROUND THEM SO ODDLY IN FACT THAT A DARING ASTRONAUT BY DIPPING REPEATEDLY INTO THE NEIGHBORHOOD OF A BLACK HOLE COULD TRANSPORT HIMSELF AS FAR AS HE PLEASED INTO THE FUTURE AND THAT IS ONLY ONE OF SEVERAL CONCEIVABLE METHODS OF TIME TRAVEL ALLOWED BY THE EQUATIONS OF RELATIVITY AS THE ENGLISH PHYSICIST JOHN GRIBBIN EXPLAINS IN HIS SPLENDID UNVEILING THE EDGE OF TIME BLACK HOLES WHITE HOLES WORMHOLES HARMONY 256 PAGES 20 AN EVEN MORE PROMISING BLUEPRINT FOR A TIME MACHINE INVOLVES CREATING AN ARTIFICIAL WORMHOLE A TUNNEL THROUGH SPACETIME LINKING TWO BLACK HOLES AND THREADING ITS THROAT WITH A COSMIC STRING SO THAT GRAVITATIONAL FORCES CANNOT CHOKE THE PASSAGE OFF THE DETAILS CAN BE LEFT TO ENGINEERING DRUDGES ALTHOUGH THE CHANCE THAT SUCH A TIME MACHINE WILL ACTUALLY BE BUILT IN THE NEXT FEW CENTURIES IS NIL ACCORDING TO ONE OF THE THEORETICIANS IT IS NEVER TOO EARLY TO BEGIN WORRYING ABOUT THE RAMIFICATIONS CHIEF AMONG THESE IS VIOLATION OF CAUSALITY A METAPHYSICALSOUNDING IDEA POPULARIZED BY THE BACK TO THE FUTURE MOVIES WHAT IF FOR INSTANCE I DECIDE TO MAKE USE OF A TIME MACHINE TO COMMIT AUTOINFANTICIDE BY MURDERING MYSELF IN THE CRIB FORTUNATELY FOR THE INTEGRITY OF LOGIC PHYSICISTS HAVE ALREADY RESOLVED SUCH POTENTIAL PARADOXES OF TIME TRAVEL AS THE DEFT MR GRIBBIN TELLS US THE REALLY DISAPPOINTING THING ABOUT THESE TIME MACHINES IS THAT WHILE THEY PERMIT TRAVEL INTO THE FUTURE AND EVEN INTO ALTERNATIVE UNIVERSES SOME WHERE MADONNA MAY NOT EVEN EXIST THEY CANNOT TAKE THE WOULDBE TIME TRAVELER ANY FURTHER INTO THE PAST THAN THE MOMENT THEY WERE BUILT THE ONLY WAY YOU COULD GO BACK IN HISTORY AND SAY BOO SALOME'S DANCE IS BY FINDING A VINTAGEMODEL TIME MACHINE THAT SOME SUPERIOR EXTRATERRESTRIAL CIVILIZATION HAS LEFT LYING AROUND OR YOU COULD SIMPLY WALK BACKWARD IN TIME AS TIMOTHY FERRIS RECOUNTS DOING IN HIS CONTRIBUTION TO MYSTERIES OF LIFE AND THE UNIVERSE NEW ESSAYS FROM AMERICA'S FINEST WRITERS IN SCIENCE HARCOURT BRACE JOVANOVICH 325 PAGES 2495 STARTING FROM TIMES SQUARE ONE DAY MR FERRIS WALKED ALL THE WAY TO THE NORTHERN TIP OF MANHATTAN AND THEN OVER TO THE SITE OF HIS FATHER'S GRAVE IN NEW JERSEY LETTING EACH FOOTFALL PULL HIM A MILLENNIUM INTO THE PAST A SINGLE STEP AND MY IMAGINATION WAS TRANSPORTED BACK ONE THOUSAND YEARS MANHATTAN THE ISLAND OF HILLS' WAS CLOAKED IN VIRGIN TIMBER BROADWAY ALONE PERSISTED A FOOTWIDE INDIAN TRAIL WINDING THROUGH THE TREES AND SO ON INTO THE EOCENE ERA THE 29 ESSAYS IN THIS COLLECTION WRITTEN BY THE LIKES OF DIANE ACKERMAN MARTIN GARDNER AND ALAN LIGHTMAN EXEMPLIFY SCIENTIFIC WRITING AT ITS VERY BEST LUCID HUMOROUS PROFOUND THE EDITOR WILLIAM H SHORE IS DIRECTOR OF SHARE OUR STRENGTH A HUNGERRELIEF FOUNDATION IN WASHINGTON DC AND ROYALTIES FROM THE VOLUME ARE TO BE DONATED TO THE NATIONAL COMMISSION TO PREVENT INFANT MORTALITY IT IS NICE THAT EVERY ONCE IN A WHILE TRUTH BEAUTY AND GOODNESS COME INTO ALIGNMENT 9301210049 930121 BUSINESS BRIEF ATLANTIC RICHFIELD CO FIRSTQUARTER RESULTS FOR '92 TO DECLINE IN A RESTATEMENT ATLANTIC RICHFIELD CO SAID IT WILL RESTATE FINANCIAL RESULTS FOR THE 1992 FIRST QUARTER REDUCING NET INCOME BY 392 MILLION OR 243 A SHARE TO COMPLY WITH NEW ACCOUNTING STANDARDS FOR RETIREMENT BENEFITS AND TAXES THE LOS ANGELES OIL COMPANY SAID THE APPLICATION OF THE STANDARDS HAS NO MATERIAL EFFECT ON EARNINGS FOR THE SECOND AND THIRD QUARTERS OF 1992 FOR THE FIRST QUARTER ARCO HAD REPORTED NET INCOME OF 180 MILLION OR 112 A SHARE INDICATING A RESTATED NET LOSS OF 212 MILLION OR 131 A SHARE THE ADJUSTMENT IS BEING MADE TO COMPLY WITH FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT 106 DEALING WITH ACCOUNTING FOR RETIREMENT BENEFITS AND THE FASB'S STATEMENT 109 ACCOUNTING FOR CORPORATE INCOME TAXES ARCO SAID IT ARRIVED AT THE 392 MILLION FIGURE BY OFFSETTING A 43 MILLION CREDIT RELATED TO STATEMENT 109 AGAINST A 435 MILLION CHARGE RELATED TO STATEMENT 106 9301210048 930121 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC UNIT IS LEASING 30 AIRCRAFT TO A TOTAL OF NINE AIRLINES AMERICAN INTERNATIONAL GROUP INC SAID ITS INTERNATIONAL LEASE FINANCE CORP UNIT LEASED 30 JET AIRCRAFT AND SPARE PARTS VALUED AT 705 MILLION TO NINE AIRLINES THREE OF THE AIRLINES CHINA SOUTHWEST AIRLINES CHENGDU CHINA LACSA THE NATIONAL AIRLINE OF COSTA RICA AND BRITISH AIR FERRIES SOUTHEND ENGLAND ARE NEW CUSTOMERS FOR THE AMERICAN INTERNATIONAL UNIT THE REMAINING SIX AIRLINES ARE BRITANNIA AIRWAYS LUTON ENGLAND UKBASED MONARCH AIRLINES DRAGONAIR HONG KONG AVIATECA THE NATIONAL AIRLINE OF GUATEMALA MORRIS AIR SALT LAKE CITY AND TACA INTERNATIONAL EL SALVADOR INTERNATIONAL LEASE FINANCE CORP IN CENTURY CITY CALIF OWNS A JET PORTFOLIO OF 7 BILLION WITH ABOUT 200 AIRCRAFT AMERICAN INTERNATIONAL GROUP IS AN INTERNATIONAL INSURANCE ORGANIZATION 9301210047 930121 BUSINESS BRIEF MAGNETEK INC LOSS OF 405 MILLION POSTED FOR FIRM'S FISCAL 2ND PERIOD MAGNETEK INC REPORTED A SECONDQUARTER NET LOSS OF 405 MILLION OR 165 A SHARE REFLECTING CHARGES RELATED TO ACCOUNTING CHANGES FOR RETIREE MEDICAL BENEFITS AND INCOME TAXES THE ELECTRICAL EQUIPMENT MAKER'S LARGE NET LOSS COMPARES WITH NET INCOME OF 38 MILLION OR 16 CENTS A SHARE IN THE YEAREARLIER FISCAL QUARTER ENDED DEC 31 EXCLUDING THE NONRECURRING CHARGES OF 487 MILLION THE COMPANY'S NET INCOME WAS 82 MILLION OR 34 CENTS A SHARE REVENUE FOR THE QUARTER WAS 372 MILLION UP 31 FROM 2838 MILLION A YEAR EARLIER FRANK PERNA JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE LOS ANGELES COMPANY ATTRIBUTED THE GAIN TO MAGNETEK'S AQUISITION LAST YEAR OF MAY & CHRISTE GMBH A EUROPEAN MANUFACTURER OF LIGHTING BALLASTS AND TRANSFORMERS MAGNETEK'S OPERATING PROFIT IN THE SECOND QUARTER ROSE 15 TO 286 MILLION SLIGHTLY BETTER THAN ANALYSTS' PREDICTIONS NET WAS ABOUT EQUAL TO EXPECTATIONS THE COMPANY SAID FOR THE SIX MONTHS THE COMPANY REPORTED A NET LOSS OF 337 MILLION COMPARED WITH NET INCOME OF 105 MILLION IN THE YEAREARLIER PERIOD 9301210046 930121 BUSINESS BRIEF TNC MEDIA INC FIRM COMPLETES MERGER PACT WITH 2 MEDICAL SUPPLY FIRMS TNC MEDIA INC SAID IT COMPLETED A MERGER AGREEMENT WITH MEDICAL DEVELOPMENT RESOURCES INC AND ITS AFFILIATE KMI INC AND EXPECTS TO CHANGE ITS NAME TO ELITE SURGICAL INSTRUMENTS INC UNDER THE TERMS OF THE AGREEMENT TNC MILFORD PA WILL ISSUE 29 MILLION COMMON SHARES AND ABOUT 290000 NONTRANSFERABLE WARRANTS EXERCISABLE AT 650 A SHARE TO SHAREHOLDERS OF MEDICAL DEVELOPMENT RESOURCES HUNTINGTON NY AND KMI WEST CHESTER PA THAT ACTION WILL FOLLOW A 1FOR2 REVERSE STOCK SPLIT FOR WHICH A DATE HASN'T BEEN SET CURRENT TNC SHAREHOLDERS WILL BE ISSUED A THREEYEAR WARRANT TO PURCHASE ONE POSTSPLIT COMMON SHARE AT 3 A SHARE TNC'S WARRANTS OUTSTANDING EXPIRING OCT 31 1993 WILL CONTINUE TO BE EXERCISABLE AT 550 A SHARE THE MERGER AGREEMENT IS PENDING TNC SHAREHOLDER APPROVAL TNC IS A WEEKLY NEWSPAPER KMI MAKES SURGICAL INSTRUMENTS AND MEDICAL DEVELOPMENT RESOURCES HOLDS A PATENT FOR A DISPOSABLE GLASS SURGICAL BLADE 9301210045 930121 BUSINESS BRIEF PACIFIC GAS & ELECTRIC CO FOURTHPERIOD NET FALLS 17 DIVIDEND IS RAISED 3 CENTS PACIFIC GAS & ELECTRIC CO SAN FRANCISCO REPORTED A 17 DROP IN FOURTHQUARTER NET INCOME TO 2058 MILLION OR 44 CENTS A SHARE BUT RAISED ITS QUARTERLY DIVIDEND ON ITS COMMON THREE CENTS A SHARE TO 47 CENTS THE EARNINGS ARE DOWN FROM 2469 MILLION OR 54 CENTS A SHARE A YEAR EARLIER REVENUE SAGGED ABOUT 3 TO 256 BILLION FROM 264 BILLION THE HIGHER DIVIDEND IS PAYABLE APRIL 15 TO SHARES OF RECORD MARCH 15 RICHARD A CLARKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE INCREASE REFLECTS THE COMPANY'S CONFIDENCE THAT IT CAN SUSTAIN ITS FINANCIAL PERFORMANCE PG&E RAISED THE DIVIDEND BY A SIMILAR AMOUNT A YEAR AGO OPERATING RESULTS AT THE COMPANY'S DIABLO CANYON NUCLEAR POWER PLANT WEAKENED IN THE 1992 FOURTH QUARTER FROM A YEAR EARLIER PRIMARILY BECAUSE THERE WERE MORE SCHEDULED REFUELING DAYS IN THE RECENT PERIOD 9301210044 930121 BUSINESS BRIEF CRAY RESEARCH INC SUPERCOMPUTER MAKER POSTS 265 MILLION 4THPERIOD LOSS CRAY RESEARCH INC SUFFERING FROM THE DOWNTURN IN THE SUPERCOMPUTING INDUSTRY REPORTED A FOURTHQUARTER NET LOSS OF 265 MILLION OR 1 A SHARE INCLUDING A PRETAX RESTRUCTURING CHARGE OF 428 MILLION IN THE 1991 FOURTH QUARTER THE EGAN MINN SUPERCOMPUTER MANUFACTURER HAD NET INCOME OF 596 MILLION OR 215 A SHARE REFLECTING THE SHARP DECLINE IN DEMAND FOR THE COMPANY'S HIGHPOWERED PRODUCTS AS WELL AS A CUSTOMER'S DELAY IN ACCEPTING A TOPOFTHELINE COMPUTER IN THE LATEST QUARTER REVENUE PLUNGED 28 TO 2273 MILLION FROM 3165 MILLION THE FOURTHQUARTER PROBLEMS PUSHED CRAY RESEARCH INTO THE RED FOR 1992 ITS FIRST YEARLY NET LOSS THE COMPANY REPORTED A NET LOSS OF 149 MILLION OR 56 CENTS A SHARE COMPARED WITH NET INCOME OF 113 MILLION OR 415 A SHARE IN 1991 REVENUES DECLINED 8 TO 7976 MILLION FROM 8625 MILLION THE COMPANY SAID ITS BACKLOG AT THE END OF THE FOURTH QUARTER WAS ABOUT 417 MILLION UP FROM 350 MILLION A YEAR EARLIER OUR RECORD BACKLOG AT THE END OF 1992 GIVES US CONFIDENCE THAT WE CAN RETURN THE COMPANY TO PROFITABILITY IN 1993 SAID CHAIRMAN JOHN A ROLLWAGEN 9301210043 930121 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CORPORATE INSOLVENCIES IN JAPAN LAST YEAR JUMPED 32 TO 14167 CASES FROM 1991 THE TOTAL WAS THE BIGGEST SINCE 1986 REFLECTING THE COUNTRY'S ECONOMIC WOES TEIKOKU DATA BANK LTD A CREDITRESEARCH AGENCY CITED FAILURE TO ADJUST SWOLLEN INVENTORIES SLUGGISH CAPITAL SPENDING AND WEAK CONSUMER CONFIDENCE THE FAILED BUSINESSES' DEBT TOTALED 7563 TRILLION YEN 603 BILLION DOWN 5 FROM THE RECORD 796 TRILLION YEN IN 1991 IN DECEMBER THE 1454 INSOLVENCIES WERE THE MOST FOR ANY MONTH IN SIX YEARS AND A 21 INCREASE FROM A YEAR EARLIER THE COMPANIES' DEBT TOTALED 82117 BILLION YEN THE FIFTHLARGEST MONTHLY SUM ON RECORD AND DOWN 54 FROM THE YEAREARLIER 86823 BILLION YEN WHICH WAS THE SECOND HIGHEST EVER DECEMBER MARKED THE 27TH CONSECUTIVE MONTH THAT FAILURES ROSE FROM YEAREARLIER LEVELS UK BUSINESS CONFIDENCE IN THE UNITED KINGDOM IS RUNNING AT ITS HIGHEST LEVEL SINCE LAST APRIL THE ASSOCIATION OF BRITISH CHAMBERS OF COMMERCE SAID ITS QUARTERLY SURVEY FOUND THAT COMPANIES BELIEVE THAT THEY ARE AT THE BEGINNING OF A STEADY CLIMB BACK INTO ECONOMIC GROWTH AMONG THE 9061 MANUFACTURERS AND SERVICE FIRMS SURVEYED DEC 118 BUSINESSES EXPECTING HIGHER PROFITS AND SALES FAR OUTNUMBER THOSE THAT DON'T EXPECT INCREASES CONFIDENCE HAS GROWN IN THE WAKE OF STABLE INTEREST RATES TAMED INFLATION AND GOVERNMENT PLANS FOR SPENDING STILL ONLY 20 OF THE BUSINESSES ARE OPERATING AT FULL CAPACITY MORE JOBS CUTS ARE EXPECTED CHINA'S FOREIGN TRADE LAST YEAR CLIMBED 22 TO 16563 BILLION FROM A YEAR EARLIER THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE SAID MANUFACTURED GOODS ACCOUNTED FOR 80 OF THE RECORD 85 BILLION IN EXPORTS IMPORTS JUMPED 26 TO 8063 BILLION MEANWHILE SPURRED BY AN INCREASE IN SECTORS OPEN TO FOREIGNERS CONTRACTS FOR FOREIGN INVESTMENT ROCKETED 380 TO 5751 BILLION WHILE OUTLAYS FROM ABROAD SOARED 160 TO 1116 BILLION MOLDOVA'S PARLIAMENT REJECTED A PROPOSED REFERENDUM ON UNIFICATION WITH NEIGHBORING ROMANIA WHICH CONTROLLED MOST OF THE FORMER SOVIET REPUBLIC UNTIL 1940 AS TWOTHIRDS OF MOLDOVA'S 42 MILLION PEOPLE ARE ETHNIC ROMANIANS UNIFICATION HAS SUPPORT IN BOTH COUNTRIES AND ROMANIAN PRESIDENT ION ILIESCU SAYS IT IS INEVITABLE BUT MANY MOLDOVANS BELIEVE UNIFICATION WOULD WORSEN TENSIONS WITH NONETHNIC ROMANIANS AND DEPRIVE MOLDOVA OF THE INDEPENDENCE IT GAINED ONLY ABOUT A YEAR AGO MOLDOVAN PRESIDENT MIRCEA SNEGUR OPPOSES QUICK UNIFICATION BUT FAVORS CLOSE TIES WITH ROMANIA THE BRITISH PARLIAMENT'S HEALTH PANEL URGED BANNING TOBACCO ADVERTISING EXCEPT IN PLACES WHERE THE PRODUCTS ARE SOLD IT ALSO FAVORED A EUROPEAN COMMUNITY DIRECTIVE WITH THE SAME GOAL FOR THE 12NATION BLOC THE COMMITTEE AFTER A FIVEMONTH STUDY SAID THE BAN WOULD CUT SMOKING PARTICULARLY AMONG YOUTHS IT DISAGREED WITH THE GOVERNMENT'S POSITION THAT THE ADS INFLUENCE ONLY BRAND CHOICES RATHER THAN DEPICT SMOKING AS SOCIALLY ACCEPTABLE BRITAIN THE NETHERLANDS AND GERMANY OPPOSE THE EC DIRECTIVE PROPONENTS SUCH AS ITALY AND SPAIN MIGHT BAN BRITISH PUBLICATIONS CARRYING TOBACCO ADS THE EC HAS SAID VIETNAM LAST YEAR EXPORTED 19 MILLION METRIC TONS OF RICE A 73 INCREASE FROM A YEAR EARLIER AND THE MOST SINCE THE COUNTRY RESUMED THE SHIPMENTS FOUR YEARS AGO AFTER LONGSTANDING CROP SHORTFALLS A METRIC TON EQUALS 220462 POUNDS THE VIETNAM FOOD IMPORTEXPORT ASSOCIATION ALSO SAID THE PERCENTAGE OF HIGHQUALITY RICE INCREASED LAST YEAR BOOSTING EXPORT REVENUE WHICH WASN'T STATED IN A SIDE EFFECT THE JUMP IN EXPORTS DROVE THE DOMESTIC MARKET PRICE OF RICE UP AS MUCH AS 18 PHILIPPINE PRESIDENT FIDEL RAMOS GAVE QUALIFIED APPROVAL TO A REVISED PROPOSAL BY A USCZECH CONSORTIUM TO BUILD A LIGHTRAIL TRANSIT LINE IN MANILA MR RAMOS ORDERED A 350 MILLION CAP ON TOTAL COSTS FOR THE PROJECT FOR WHICH TECHNICAL ISSUES MUST STILL BE RESOLVED NEGOTIATIONS HAVE BEEN UNDER WAY MORE THAN THREE YEARS THE 15MILE MASSTRANSIT LINE ALONG EPIFANIO DE LOS SANTOS AVENUE THE TRAFFICCHOKED RING ROAD KNOWN AS EDSA IS TO BE BUILT BY EDSA LRT CORP AND OWNED BY THE GOVERNMENT AFTER A 25YEAR LEASE FOR 73 MILLION A YEAR INITIALLY AND GRADUALLY FALLING TO 36 MILLION MR RAMOS EAGER FOR THE RAIL LINE TO BE COMPLETED BEFORE HIS TERM EXPIRES IN 1997 ACCEPTED A REVISED PROPOSAL HALVING TO 50 MILLION A REVOLVING LETTER OF CREDIT THE CONSORTIUM SOUGHT TO BACK THE GOVERNMENT'S MONTHLY LEASE PAYMENTS IN TWO OTHER COMPROMISES THE CONSORTIUM AGREED TO GUARANTEE THE GOVERNMENT AT LEAST 300 MILLION PESOS 122 MILLION IN ANNUAL REVENUE FROM PROPERTY DEVELOPMENT AT THE LINE'S 18 STATIONS AND TO SHARE RESPONSIBILITY FOR INSURANCE AGAINST MAJOR RISKS SUCH AS WAR AND NATURAL DISASTERS JAMAICA'S 870 MILLIONAYEAR TOURISM INDUSTRY WAS DISRUPTED FOR A SECOND DAY AS AIR CONTROLLERS CALLED IN SICK PROTESTING THE GOVERNMENT'S FAILURE TO RESPOND TO THEIR PAYRAISE PROPOSAL MADE LAST OCTOBER THE ACTION FORCED AN AIRPORT CLOSURE AND FLIGHT CANCELLATIONS KUWAIT'S PARLIAMENT PASSED LEGISLATION GIVING ITS CITIZENS THE RIGHT TO OWN PISTOLS AND AUTOMATIC RIFLES 9301210041 930121 BUSINESS BRIEF INTEGRATED RESOURCES INC DISTRIBUTIONS TO CREDITORS UNDER PLAN ARE DISCLOSED INTEGRATED RESOURCES INC SAID IN A FILING WITH THE US BANKRUPTCY COURT THAT IT WILL DISTRIBUTE A COMBINATION OF CASH NOTES AND STOCK TO SENIOR AND GENERAL UNSECURED CREDITORS UNDER ITS REORGANIZATION PLAN THE COMPANY A NEW YORK MANAGER OF REAL ESTATE INVESTMENT PARTNERSHIPS THAT HAS BEEN OPERATING UNDER CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS SINCE 1990 SAID THAT FOR EACH DOLLAR IN CLAIMS SENIOR UNSECURED CREDITORS WOULD RECEIVE 39 CENTS IN CASH NOTES CALLED CERTIFICATES OF BENEFICIAL INTEREST WORTH 175 CENTS AND STOCK WORTH THREE CENTS TO BE ISSUED AT A LATER DATE GENERAL UNSECURED CREDITORS WILL RECEIVE 243 CENTS CASH ON THE DOLLAR NOTES WORTH 11 CENTS AND TWO CENTS WORTH OF STOCK THE COMPANY SAID THE VALUES WERE BASED ON PROJECTIONS OF ALLOWED CLAIMS IT HAS SAID PREVIOUSLY THAT SUBORDINATED DEBTHOLDERS AND CURRENT SHAREHOLDERS WILL RECEIVE NOTHING UNDER THE PLAN 9301210040 930121 TECHNOLOGY IBM LAUNCHES FIREWORKS' UNIT TO FORM JOINT VENTURES FOR MULTIMEDIA PROJECTS BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP ESTABLISHED A UNIT THAT IT SAID WILL SPEND TENS OF MILLIONS OF DOLLARS ON JOINT PROJECTS IN MULTIMEDIA TECHNOLOGY WITH OTHER COMPANIES AND OUTSIDE ENTREPRENEURS MULTIMEDIA TECHNOLOGY USES COMPUTERS TO HANDLE TEXT SOUND AND VIDEO MATERIAL IN A COLORFUL FLOURISH IBM DUBBED THE NEW VENTURE FIREWORKS PARTNERS IBM SAID FIREWORKS OFFICIALS ARE TALKING WITH SEVERAL POTENTIAL PARTNERS ABOUT NEW SERVICES AND APPLICATIONS INVOLVING MULTIMEDIA IBM BASED IN ARMONK NY SAYS MULTIMEDIA IS AN EXPLODING AREA THAT COULD IGNITE NEW DEMAND FOR COMPUTERS AND SERVICES INCLUDING ITS OWN FADING MAINFRAME COMPUTERS WHICH COULD SERVE AS HUBS IN BIG MULTIMEDIA NETWORKS OUTSIDE ANALYSTS ALSO ARE OPTIMISTIC ABOUT MULTIMEDIA BUT DOUBT IT WILL ARRIVE SOON ENOUGH TO BE A SAVIOR FOR FALTERING IBM WHICH REPORTED A RECORD FOURTHQUARTER LOSS OF 546 BILLION THIS WEEK AN IBM SPOKESMAN DECLINED TO NAME ANY POTENTIAL ALLIES FOR FIREWORKS BUT HE SAID IT COULD ANNOUNCE ITS FIRST DEAL WITHIN 30 DAYS AFTER THAT HE SAID WE'D LIKE TO ESTABLISH A DRUMBEAT OF ANNOUNCEMENTS THROUGHOUT THE REST OF THE YEAR THE SPOKESMAN ALSO DECLINED TO DESCRIBE ANY POTENTIAL FIREWORKS ALLIANCES BUT HE SAID A PREVIOUSLY ANNOUNCED STUDY WITH BLOCKBUSTER ENTERTAINMENT CORP OF MUSICSTORE KIOSKS THAT WOULD MAKE AND DISPENSE ANY COMPACT DISK ON DEMAND IS THE KIND OF THING WE'RE TALKING ABOUT BESIDES FUNDING NEW VENTURES FIREWORKS WILL TAKE OVER SOME HIGHPROFILE IBM PROJECTS INCLUDING ITS KALEIDA LABS JOINT VENTURE WITH APPLE COMPUTER INC AND ITS NBC DESKTOP NEWS ALLIANCE WITH GENERAL ELECTRIC CO'S NBC UNIT AND NUMEDIA CORP FIREWORKS WILL BE RUN BY BOB CARBERRY A TECHNICAL EXPERT FOR IBM'S PERSONAL SYSTEMS BUSINESS AND MICHAEL BRAUN WHO PREVIOUSLY OVERSAW MULTIMEDIA PROJECTS IN ANOTHER PART OF IBM THE MEN WILL REPORT TO JIM CANNAVINO THE IBM SENIOR VICE PRESIDENT WHO RUNS PERSONAL SYSTEMS A MOVE THAT MUDDIES THE RESPONSIBILITIES OF LUCIE FJELDSTAD IBM VICE PRESIDENT IN CHARGE OF MULTIMEDIA TO WHOM MR BRAUN PREVIOUSLY REPORTED MR CANNAVINO ALREADY HAS MANY MULTIMEDIA PROJECTS IN MOTION AND EXPRESSED AN INTEREST IN FIREWORKS THE IBM SPOKESMAN SAID NOTING THAT BERNARD PUCKETT MS FJELDSTAD'S BOSS ALSO WILL PLAY A ROLE OVERSEEING FIREWORKS DESPITE THE FACT THAT IT WILL BE CLOSELY ASSOCIATED WITH IBM'S PERSONAL SYSTEMS OPERATION FIREWORKS ALSO WILL TRY TO COORDINATE MULTIMEDIA MARKETING THROUGHOUT THE COMPUTER CONCERN'S WORLDWIDE OPERATIONS SEPARATELY IBM SIGNALED THAT IT MAY GIVE A GOAHEAD IN THE FIRST QUARTER TO A COMPANY THAT WOULD SEND VIDEOS AND OTHER INTERACTIVE INFORMATION OVER NEW MULTIMEDIA HIGHWAYS TO BUSINESSES AND HOMES MS FJELDSTAD HAD BEEN TRYING TO ROUND UP PARTNERS FOR THE PROJECT BEFORE THE END OF 1992 THE IBM SPOKESMAN SAID ESTABLISHMENT OF THE NEW COMPANY HADN'T BEEN DELAYED AND THAT MS FJELDSTAD HADN'T MEANT TO SET A FIRM DEADLINE FOR FINDING PARTNERS ASKED ABOUT RUMORS THAT IBM'S INVESTMENT IN MS FJELDSTAD'S NEW COMPANY HAD BEEN CUT FROM THE PLANNED 100 MILLION THE IBM SPOKESMAN HE WASN'T AWARE OF ANY CHANGE IN FUNDING BUT HE SAID THAT IF IBM DECIDED TO LAUNCH THE COMPANY WITHOUT ANY PARTNERS IT MIGHT START OUT AS A SMALLER VENTURE THAN PREVIOUSLY PLANNED 9301210039 930121 FOREIGN EXCHANGE DOLLAR ENDS LOWER ON DEARTH OF NEWS LACK OF ECONOMIC CUES IN CLINTON SPEECH BY CHARLENE LEE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A DEARTH OF NEWS AND THE LACK OF STRONG ECONOMIC POLICY SIGNALS FROM PRESIDENT CLINTON'S INAUGURAL ADDRESS LEFT THE DOLLAR WITH LITTLE SUPPORT AS TECHNICAL SELLING AGAIN TOOK ITS TOLL IN THE MEANTIME THE REPORT OF AN UNEXPECTED FALL IN UNITED KINGDOM RETAIL SALES FOR DECEMBER SENT THE POUND REELING AGAINST THE MARK AND THE AUSTRALIAN DOLLAR'S CHRONIC WEAKNESS PROMPTED REPEATED CENTRAL BANK INTERVENTION IN NORTH AMERICAN TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16030 MARKS DOWN FROM 16110 MARKS LATE TUESDAY IN NEW YORK AND AT 12468 YEN DOWN FROM 12545 YEN STERLING WAS TRADING AT 15435 DOWN FROM 15465 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 16008 MARKS AND AT 12462 YEN IT'S BEEN A DAY THAT'S BEEN LACKING IN ANY EVENT TO GIVE THE MARKET ANY DIRECTION SAID DAVID JAQUES SENIOR CORPORATE TRADER IN NEW YORK FOR BARCLAYS BANK PLC A TEPID MARKET RECEPTION TO MR CLINTON'S INAUGURAL SPEECH CONTRIBUTED TO THE DOLLAR'S DOWNWARD DRIFT TRADERS AND ANALYSTS SAID THE SPEECH FAILED TO PROVIDE ANY FRESH INDICATION OF WHAT HIS IMMEDIATE ECONOMIC PLANS WILL BE IN TERMS OF POLITICAL DIRECTION FOR THE MARKET I THINK WE'RE GOING TO HAVE TO WAIT FOR THE STATE OF THE UNION ADDRESS MR JAQUES ADDED ALSO WITH LITTLE ECONOMIC DATA SCHEDULED FOR RELEASE THIS WEEK TECHNICAL FACTORS WERE THE DOMINANT FORCE IN THE MARKET BECAUSE THE DOLLAR ENCOUNTERED DIFFICULTY SUSTAINING MOMENTUM ABOVE 16100 MARKS DEALERS SAID PLAYERS FOUND ATTACKS ON THE CURRENCY'S DOWNSIDE MORE INVITING ALTHOUGH ONE SUPPORT LEVEL AROUND 16060 MARKS WAS PUNCTURED YESTERDAY ANOTHER KEY TECHNICAL POINT AT 16020 MARKS HELD FIRM TRADERS HOWEVER SAY THERE'S A LIKELIHOOD THAT THE US CURRENCY MIGHT DIVE BELOW A PSYCHOLOGICAL FLOOR OF 16000 MARKS BEFORE THE WEEKEND WORKING AGAINST THE DOLLAR ARE RAPIDLY FADING HOPES FOR A SHARP DOLLAR RALLY EARLY THIS YEAR AS WELL AS TREPIDATION THAT THE LONGAWAITED NARROWING OF THE INTERESTRATE GAP BETWEEN THE US AND GERMANY WILL BE DELAYED MARKET WATCHERS SAID THE BUNDESBANK SAID IT DOES NOT PLAN TO HOLD A NEWS CONFERENCE FOLLOWING THE BIWEEKLY MEETING TODAY OF A POLICYSETTING COMMITTEE THAT OFTEN IS TAKEN AS A SIGNAL THAT THE CENTRAL BANK'S INTERESTRATE POLICY WILL BE LEFT AS IS THE DOLLAR IS A LITTLE SOFT NOTED DENNIS PETTIT FOREIGN EXCHANGE MANAGER IN NEW YORK FOR LONGTERM CREDIT BANK OF JAPAN THERE ARE SOME CONCERNS THAT THE BUNDESBANK MAY BE HOLDING OFF ON A RATE EASE AND THERE ARE PEOPLE OUT THERE THAT ARE CONCERNED THAT THERE MAY BE SOME REASONS FOR A RATE EASE IN THE US HE SAID REFERRING TO RECENT REPORTS THAT THE CLINTON ADMINISTRATION MIGHT TRY TO STRONGARM THE FEDERAL RESERVE INTO ANOTHER CUT IN SHORTTERM RATES MEANWHILE SURPRISINGLY WEAK DECEMBER RETAIL SALES IN BRITAIN SENT STERLING PLUMMETING AGAINST ITS GERMAN COUNTERPART AND LEFT IT SLIGHTLY WEAKER AGAINST THE DOLLAR THE SALES DATA LEFT IN DOUBT WHETHER BRITAIN'S ECONOMY HAS BENEFITED AT ALL FROM THE THREEPERCENTAGEPOINT FALL IN UK BASE LENDING RATES SEEN SINCE STERLING'S SUSPENSION FROM THE ERM IN SEPTEMBER LATE IN NEW YORK STERLING WAS FETCHING 24763 MARKS WELL BELOW 24914 MARKS ON TUESDAY 9301210038 930121 OTC FOCUS SMALL BANK ISSUES LEAD NASDAQ STOCKS AND MARKET'S COMPOSITE INDEX HIGHER BY DAVE PETTIT AND ELVIRA DOMENICON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WITH MANY STOCK PRICES IN RETREAT INVESTORS DEPOSITED THEIR MONEY IN SHARES OF NASDAQLISTED BANKS A SECTOR THAT WAS ABOUT THE ONLY BRIGHT SPOT IN THE ENTIRE US EQUITY MARKET YESTERDAY SMALL BANK STOCKS HELPED LIFT THE NASDAQ COMPOSITE INDEX TO A SLIM ADVANCE OF 063 OR 009 TO 69744 THE NASDAQ BANK INDEX SURGED 1054 OR 187 TO 57414 ADVANCING NASDAQ STOCKS HOWEVER LED DECLINERS BY A MODEST 1419 TO 1201 NATIONAL MARKET SYSTEM VOLUME TOTALED 222440600 SHARES DOWN FROM 231180900 TUESDAY IN CONTRAST THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 077 OR 032 TO 23889 AND THE DOW JONES INDUSTRIAL AVERAGE FELL 1404 OR 043 TO 324195 BANKS WERE AMONG THE BIG BOARD'S LOSERS ANTHONY R DAVIS AN ANALYST AT WHEAT FIRST BUTCHER & SINGER SAID RECENT STRONG EARNINGS REPORTS FROM BANKING COMPANIES CONTINUE TO LIFT THAT SECTOR OF THE NASDAQ MARKET THE BANK INDEX HAS CLOSED AT NEW HIGHS IN EACH OF THE PAST 11 SESSIONS AND JUMPED 77 SO FAR THIS YEAR IT SPURTED 52 IN 1992 WHEAT FIRST'S MR DAVIS SAID EXPECTATIONS ABOUT ACQUISITION ACTIVITY IN THE BANKING INDUSTRY HELPED BOOST NASDAQ BANKS EVEN AS THAT INDUSTRY GROUP SLID ON THE BIG BOARD THE ABILITY ECONOMICALLY TO DO TRANSACTIONS TODAY IS AS GOOD AS IT HAS BEEN IN FIVE YEARS MR DAVIS SAID ARMED WITH RENEWED FINANCIAL STABILITY LARGE BANKS ARE EXPECTED TO LOOK FOR ACQUISITION TARGETS AMONG SMALLER FINANCIAL INSTITUTIONS HE SAID A POTENTIAL BUYOUT LIFTED SHARES OF NATIONAL COMMUNITY BANKS 2 3/4 TO 42 3/4 THE WEST PATERSON NJ COMPANY SAID IT IS IN TALKS THAT COULD LEAD TO AN ACQUISITION HOWEVER IT SAID THERE ISN'T ANY ASSURANCE IT WILL REACH AN AGREEMENT THE COMPANY DIDN'T IDENTIFY THE POTENTIAL BUYERS LANCE ZIPPER MANAGER OF NASDAQ TRADING AT KIDDER PEABODY & CO SAID THE ENTHUSIASM FOR BANKS HAS ENTICED SOME INVESTORS TO ROTATE MONEY INTO THE GROUP IT SEEMS THAT WHEN THERE IS A LITTLE BIT OF PROFITTAKING THE MONEY THAT COMES OUT GOES INTO THE FINANCIALS HE SAID BUT ALL THIS OPTIMISM MIGHT BE NEARING AN END ACCORDING TO PHILIP ROTH A TECHNICAL ANALYST AT DEAN WITTER REYNOLDS I THINK BANK STOCKS ARE NOW QUITE OVERDONE HE SAID THE ANALYST EXPECTS DETERIORATION IN THE BANK GROUP TO CONTRIBUTE TO A GENERAL RETREAT IN OVERTHECOUNTER STOCKS IN THE NEAR TERM HE PREDICTS NASDAQ STOCKS WILL FALL INTO A GRADUAL DECLINE THAT WILL LAST THREE OR FOUR MONTHS MANY MARKET PLAYERS EXPECT THE DIRECTION OF SMALL STOCKS TO BE INFLUENCED BY THE FISCAL PROPOSALS THAT ARE UNVEILED BY THE CLINTON ADMINISTRATION FIRSTFED MICHIGAN ROSE 1 1/8 TO 26 AFTER IT EXCEEDED ANALYSTS' EXPECTATIONS FOR FOURTHQUARTER EARNINGS THE DETROITBASED SAVINGSANDLOAN HOLDING COMPANY REPORTED NET INCOME OF 81 CENTS A SHARE UP FROM 68 CENTS A SHARE A YEAR EARLIER AND ABOVE THE 72 CENTSASHARE MEAN FORECAST OF ANALYSTS SURVEYED BY INSTITUTIONAL BROKERS ESTIMATE SYSTEM GERMANTOWN SAVINGS BANK BASED IN BALA CYNWYD PA CLIMBED 1 1/2 TO 30 1/4 IT REPORTED FOURTHQUARTER PROFIT OF 85 CENTS A SHARE UP FROM 77 CENTS A SHARE LAST YEAR'S RESULT INCLUDED A NONRECURRING GAIN OF 19 CENTS BUT CORESTATES FINANCIAL LOST 1 3/8 TO 56 5/8 AFTER IT POSTED FOURTHQUARTER PROFIT OF 119 A SHARE A PENNY BELOW THE MEAN FORECAST REPORTED BY IBES THE PHILADELPHIABASED BANK HOLDING COMPANY EARNED 103 A SHARE A YEAR EARLIER INDEPENDENCE BANCORP'S LOSS OF 60 CENTS A SHARE FOR THE FINAL QUARTER OF 1992 SENT ITS SHARES SLIDING 1 1/4 TO 26 3/4 THE PERKASIE PA COMPANY POSTED A PROFIT OF 40 CENTS A SHARE FOR THE YEAREARLIER FOURTH QUARTER ELSEWHERE BIOGEN JUMPED 1 3/8 TO 41 5/8 AFTER THE CAMBRIDGE MASS BIOTECHNOLOGY COMPANY POSTED HIGHERTHANEXPECTED FOURTHQUARTER EARNINGS BIOGEN HAD A PROFIT OF 75 CENTS A SHARE FOR THE PERIOD UP FROM THREE CENTS A SHARE A YEAR EARLIER EXABYTE A BOULDER COLO MAKER OF COMPUTER DATASTORAGE DEVICES FELL 2 3/8 TO 14 5/8 AFTER IT SAID FOURTHQUARTER NET INCOME PLUNGED TO 25 CENTS A SHARE FROM 47 CENTS A SHARE SALES EASED TO 706 MILLION FROM 714 MILLION LASER SYSTEMS MAKER COHERENT PALO ALTO CALIF ROSE 1 1/2 TO 12 1/4 ITS EARNINGS FOR ITS FIRST QUARTER ENDED LAST MONTH ROSE TO 16 CENTS A SHARE FROM 11 CENTS A SHARE AN INVESTMENT RATING DOWNGRADE BY A LEHMAN BROTHERS ANALYST SENT MCCAW CELLULAR COMMUNICATIONS SHARES DOWN 1 TO 39 THE KIRKLAND WASH CELLULAR TELEPHONE COMPANY'S STOCK IS NOW RATED BUY BY THE ANALYST INSTEAD OF STRONG BUY ALLIED CLINICAL LABORATORIES NASHVILLE TENN DROPPED 4 7/8 TO 21 5/8 AMID A REPORT IT EXPECTS TO REPORT FOURTHQUARTER EARNINGS OF ABOUT 25 CENTS A SHARE THE FORECAST EXCEEDS YEAREARLIER EARNINGS OF 20 CENTS A SHARE BUT IS BELOW ANALYSTS' EXPECTATIONS WHICH RANGE FROM 26 CENTS TO 30 CENTS A SHARE DATASOUTH COMPUTER ROSE 15/16 TO 3 5/16 AFTER ATLANTABASED BULL RUN AGREED TO ACQUIRE A 43 STAKE IN THE CHARLOTTE NC COMPUTER PRINTER MAKER FROM COLD HEADING BASED IN DETROIT BULL RUN SLIPPED 1/4 TO 1 15/16 PDA ENGINEERING ROSE 1 1/2 TO 21 AFTER THE COSTA MESA CALIF CONCERN REPORTED NET OF 23 CENTS A SHARE FOR ITS SECOND QUARTER ENDED DEC 31 UP FROM 18 CENTS A SHARE A YEAR EARLIER SEPARATELY IT ENTERED INTO A 26 MILLION CONTRACT TO PROVIDE SOFTWARE AND SERVICES TO NEW YORK STOCK EXCHANGELISTED GENERAL ELECTRIC 9301210037 930121 POLITICS & POLICY ASKING HIS GENERATION TO ACCEPT RESPONSIBILITY FOR GOVERNING CLINTON BECOMES 42ND PRESIDENT BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WILLIAM JEFFERSON CLINTON SWORN IN YESTERDAY AS THE 42ND PRESIDENT OF THE UNITED STATES HARKED BACK TO HIS CAMPAIGN'S THEMES OF CHANGE AND RENEWAL IN AN UNUSUALLY BRIEF AND AT TIMES MOVING INAUGURAL ADDRESS IN A CEREMONY THAT REPRESENTED NOT JUST A PASSING OF THE TORCH FROM ONE PRESIDENT TO ANOTHER BUT ALSO THE PASSAGE OF POWER FROM ONE GENERATION TO THE NEXT THE 46YEAROLD MR CLINTON APPEALED DIRECTLY TO HIS FELLOW BABY BOOMERS TO ACCEPT RESPONSIBILITY FOR THEIR GOVERNMENT AND IN AN ATTEMPT TO PREPARE THE NATION FOR SOME OF THE BUDGETTIGHTENING MEASURES HE WILL PROPOSE IN THE COMING WEEKS MR CLINTON ADDED TO THE FEELGOOD THEMES OF HIS CAMPAIGN A CAUTIONARY NOTE RESPONSIBILITY WILL MEAN SOME SACRIFICE IN THE NEW GLOBALLY COMPETITIVE WORLD SPEAKING WITHOUT AN OVERCOAT WITH THE TEMPERATURE IN THE 40S MR CLINTON SUBTLY EVOKED THE MEMORY OF THE TWO LEADERS WHO SHAPED THE POLITICAL CONSCIOUSNESS OF HIS GENERATION JOHN F KENNEDY WHO ALSO CALLED FOR SERVICE FROM HIS FELLOW AMERICANS AND MARTIN LUTHER KING JR WHOSE REFERENCE TO A MOUNTAINTOP IN HIS I HAVE A DREAM SPEECH WAS REPRISED IN MR CLINTON'S SPEECH MR CLINTON ALSO SUGGESTED HIS GOVERNMENT WOULD FOLLOW THE LEAD SET BY FRANKLIN D ROOSEVELT'S NEW DEAL ADMINISTRATION A GOVERNMENT OF BOLD PERSISTENT EXPERIMENTATION THE 14MINUTE SPEECH WAS AN ATTEMPT TO RECAPTURE THE IMAGE OF MR CLINTON AS AN AGENT OF CHANGE AN IMAGE THAT HAS BEEN TARNISHED IN THE PAST TWO MONTHS BY A TRANSITION THAT HAS OFTEN SEEMED BOGGED DOWN IN WASHINGTON BUSINESS AS USUAL HE CRITICIZED THE CAPITAL AS A CITY WHERE POWERFUL PEOPLE MANEUVER FOR POSITION AND WORRY ENDLESSLY ABOUT WHO IS IN AND WHO IS OUT WHO IS UP AND WHO IS DOWN FORGETTING THOSE PEOPLE WHOSE TOIL AND SWEAT SENDS US HERE AND PAYS OUR WAY THEN SAID AMERICANS DESERVE BETTER TO DRIVE HOME THAT POINT HE IMMEDIATELY SIGNED AN EXECUTIVE ORDER USING THE SIGNATURE WILLIAM J CLINTON IMPOSING TOUGH NEW ETHICAL STANDARDS ON MEMBERS OF HIS ADMINISTRATION THE PREVIOUSLY ANNOUNCED RULES PROHIBIT TOP CLINTON ADMINISTRATION APPOINTEES FROM LOBBYING THEIR AGENCIES FOR FIVE YEARS AFTER LEAVING THEIR POSTS AND PERMANENTLY BANS THEM FROM LOBBYING FOR FOREIGN GOVERNMENTS ONE GRACIOUS AND SYMBOLIC MOMENT ENCAPSULATED THE THEME OF INTERGENERATIONAL CHANGE EARLY IN HIS TALK MR CLINTON SAID POINTEDLY THAT EACH GENERATION OF AMERICANS MUST DEFINE WHAT IT MEANS TO BE AN AMERICAN HE THEN TURNED TO PRESIDENT BUSH BEHIND HIM ON THE PODIUM AND THANKED HIM FOR HIS HALF CENTURY OF SERVICE TO AMERICA AND THANKED THE OTHER MEMBERS OF MR BUSH'S WORLD WAR II GENERATION THAT HE SAID TRIUMPHED OVER DEPRESSION FASCISM AND COMMUNISM AFTER THE APPLAUSE SUBSIDED MR BUSH QUIETLY SAT DOWN AND MR CLINTON TURNED TOWARD THE AUDIENCE AND STEPPED BRISKLY BACK TO THE LECTERN TODAY HE BEGAN IN A DIRECT ADDRESS TO HIS PEERS A GENERATION RAISED IN THE SHADOWS OF THE COLD WAR ASSUMES NEW RESPONSIBILITIES THE SPEECH PROBABLY WILL BE REMEMBERED AS A GOOD IF NOT GREAT ORATION THAT WAS DELIVERED WITH THE YOUTHFUL VERVE AND RAPID PACE THAT BEFITTED ITS MOMENT IN HISTORY ITS MESSAGE TRACKED CLOSELY WITH THE POPULISM OF MR CLINTON'S SUCCESSFUL RUN FOR OFFICE BUT LIKE THAT CAMPAIGN IT ALSO AVOIDED FOCUSING ON THE CLEAR GOAL OR SET OF GOALS THAT WILL DEFINE THE CLINTON GOVERNMENT WE DIDN'T GET A CLEAR VISION OF THE OVERARCHING PRINCIPLES THAT WILL GUIDE HIS PRESIDENCY SAID KATHLEEN HALL JAMIESON DEAN OF THE UNIVERSITY OF PENNSYLVANIA'S ANNENBERG SCHOOL OF COMMUNICATIONS IT HAD THE WEAKNESSES THAT HAVE CHARACTERIZED THE CLINTON CAMPAIGN RHETORIC IT HAD A LITTLE BIT OF EVERYTHING WHATEVER HIS SPEECH'S SHORTCOMINGS MR CLINTON WON APPLAUSE FROM HIS AUDIENCE AT LEAST FOUR TIMES ONE OF THE MOST POPULAR PASSAGES WAS ONE IN WHICH HE SAID IT WAS TIME TO GIVE THIS CAPITAL BACK TO THE PEOPLE TO WHOM IT BELONGS HE ALSO SAID LET US RESOLVE TO REFORM OUR POLITICS SO THAT POWER AND PRIVILEGE NO LONGER SHOUT DOWN THE VOICE OF THE PEOPLE ANOTHER MAJOR APPLAUSE LINE DEALT WITH THE NEED FOR CHANGE HE SAID THOMAS JEFFERSON BELIEVED THAT CHANGE WAS NEEDED PERIODICALLY TO PRESERVE DEMOCRACY WELL MY FELLOW AMERICANS THIS IS OUR TIME HE SAID LET US EMBRACE IT ALTHOUGH STIRRING BOTH COMMENTS CONTRASTED SHARPLY WITH MR CLINTON'S OWN TRANSITION TO POWER OVER THE PAST TWO MONTHS WHICH WAS HIGHLIGHTED BY CLOSE RELATIONS WITH CONGRESS AND THE APPOINTMENT OF MANY WASHINGTON INSIDERS TO HIGH GOVERNMENT POSTS IN ADDITION HIS INAUGURAL EVENTS HAVE BEEN FINANCED BY MILLIONS OF DOLLARS OF INTERESTFREE LOANS FROM BIG CORPORATIONS WASHINGTON'S STREETS HAVE BEEN LINED WITH STRETCH LIMOUSINES FOR DAYS MR CLINTON ON HIS INAUGURATION DAY INEVITABLY WAS COMPARED MOST TO PRESIDENT KENNEDY WHO WAS A BOYHOOD HERO OF HIS AND WHO PRESIDED OVER A SIMILAR CHANGE OF GENERATIONS MR CLINTON'S VARIED REFERENCES TO HIS NATIONALSERVICE PROGRAM YESTERDAY ECHOED MR KENNEDY'S ASK NOT WHAT YOUR COUNTRY CAN DO FOR YOU ASK WHAT YOU CAN DO FOR YOUR COUNTRY BUT THE CLINTON VERSION LACKED ANY SUCH RINGING PHRASE IT DIDN'T HAVE KENNEDY'S ELOQUENCE BUT IT CERTAINLY WAS MUCH MORE SIMILAR TO KENNEDY'S THAN TO ANY OTHER INAUGURAL SAID MARY STUCKEY A UNIVERSITY OF MISSISSIPPI PROFESSOR AND AUTHOR OF THE PRESIDENT AS INTERPRETERINCHIEF THE SPEECH ALSO BORE SIMILARITIES TO PRESIDENT REAGAN'S FIRST INAUGURAL ADDRESS IN 1981 THAT SPEECH THOUGH ANTIGOVERNMENT IN TONE ALSO DEALT WITH TAKING OVER THE PRESIDENCY FROM THE OPPOSING PARTY AT HIS INAUGURATION FOUR YEARS BEFORE THAT PRESIDENT CARTER STRESSED A NEED FOR CITIZENS TO TAKE RESPONSIBILITY MUCH AS MR CLINTON DID YESTERDAY BUT MR CARTER'S VISION WAS HARSHER AND MORE PESSIMISTIC THAN THE INSISTENTLY UPBEAT MR CLINTON'S MR CARTER SPOKE OF A CRISIS IN CONFIDENCE MR CLINTON ACKNOWLEDGED ECONOMIC PROBLEMS BUT SAID THERE IS NOTHING WRONG WITH AMERICA THAT CANNOT BE CURED BY WHAT IS RIGHT WITH AMERICA MR CLINTON A SOUTHERN BAPTIST DIDN'T SHRINK FROM INVOKING RELIGION IN HIS ADDRESS HE QUOTED THE BIBLE WHEN HE MENTIONED THE NEED TO BE INDEFATIGABLE IN PURSUIT OF A BETTER NATION AND HE ASKED FOR GOD'S HELP AND SAID GOD BLESS YOU ALL TO CLOSE HE WAS ALSO THOROUGHLY MODERN HE SPOKE OF THE POWER OF TELEVISION AND THE MAGIC OF TECHNOLOGY HE ALSO SEEMED TO ALLUDE TO THE STAR TREK TELEVISION SERIES THAT HAS BEEN A STAPLE OF THE BABY BOOM GENERATION WHEN HE SAID TO RENEW AMERICA WE MUST BE BOLD WE MUST DO WHAT NO GENERATION HAS HAD TO DO BEFORE WHICH BROUGHT TO MIND ONE OF THE OBJECTIVES STATED IN STAR TREK'S INTRODUCTION TO BOLDLY GO WHERE NO MAN HAS GONE BEFORE MR CLINTON RAISED THE POSSIBILITY OF AN ACTIVIST AND AMBITIOUS FOREIGN POLICY THAT BELIED HIS CAMPAIGN'S FOCUS ON DOMESTIC ISSUES OUR HOPES OUR HEARTS OUR HANDS ARE WITH THOSE ON EVERY CONTINENT WHO ARE BUILDING DEMOCRACY AND FREEDOM HE SAID THEIR CAUSE IS AMERICA'S CAUSE IN THE END THE SPEECH WAS A CALL FOR INCLUSION FOR INTERDEPENDENCE AND SUPPORT FOR CHANGE NO PRESIDENT NO CONGRESS NO GOVERNMENT CAN UNDERTAKE THIS MISSION ALONE MR CLINTON SAID MY FELLOW AMERICANS YOU TOO MUST PLAY YOUR PART IN OUR RENEWAL 9301210036 930121 WHAT'S NEWS WORLDWIDE CLINTON TOOK THE OATH OF OFFICE AS THE COUNTRY'S 42ND PRESIDENT IN HIS INAUGURAL ADDRESS THE 46YEAROLD DEMOCRAT REPEATED HIS CAMPAIGN'S THEMES OF CHANGE AND RENEWAL HE URGED MEMBERS OF HIS GENERATION TO ACCEPT RESPONSIBILITY FOR THEIR GOVERNMENT AND CRITICIZED WASHINGTON AS A CITY WHERE POWERFUL PEOPLE MANEUVER FOR POSITION THE PRESIDENT LATER SIGNED AN ORDER IMPOSING TOUGH NEW ETHICAL STANDARDS ON THOSE IN HIS ADMINISTRATION HILLARY CLINTON IS EXPECTED TO TAKE CHARGE OF THE PRESIDENT'S HEALTHCARE OVERHAUL PROPOSAL ACCORDING TO TRANSITION OFFICIALS THE CRITICAL ROLE IN DRAFTING ONE OF THE ADMINISTRATION'S KEY POLICIES WOULD BE UNPRECEDENTED FOR A FIRST LADY FOLLOWING THE CEREMONY BUSH FLEW HOME TO HOUSTON ENDING A QUARTERCENTURY OF PUBLIC SERVICE AND 12 YEARS OF REPUBLICAN RULE IN THE WHITE HOUSE THE SENATE SWIFTLY CONFIRMED CLINTON'S CHOICES TO HEAD THE TREASURY PENTAGON AND STATE DEPARTMENT TREASURY SECRETARY BENTSEN DEFENSE SECRETARY ASPIN AND SECRETARY OF STATE CHRISTOPHER WERE ALL CONFIRMED WITHOUT DISSENT IRAQ'S GOVERNMENT GAVE BUSH ONE PARTING RHETORICAL BLAST ADVISING HIM TO COMMIT SUICIDE AND PLEDGING TO REBUILD A FACTORY NEAR BAGHDAD THAT WAS ATTACKED SUNDAY BY US MISSILES AMERICAN AIRCRAFT WERE REPORTED OVER IRAQ BUT WASHINGTON MILITARY OFFICIALS SAID THERE WERE NO PROVOCATIVE INCIDENTS A PARLIAMENT OF BOSNIAN SERBS RATIFIED A UN PLAN TO END THE CIVIL WAR IN BOSNIA THE SERB LEADERS AFTER HOURS OF DEBATE ACCEPTED THE PLAN WHICH WOULD DIVIDE BOSNIA INTO 10 AUTONOMOUS PROVINCES ALONG ETHNIC LINES THE SERBS ARE HOPING TO STAVE OFF FURTHER SANCTIONS AND THE THREAT OF WESTERN MILITARY INTERVENTION PLO OFFICIALS SAID ISRAEL'S REPEAL OF A LAW BANNING CONTACTS WITH THEM IS MEANINGLESS UNLESS ISRAEL ALSO HOLDS DIRECT PEACE TALKS WITH THE GROUP SOME OFFICIALS OF THE PALESTINE LIBERATION ORGANIZATION ALSO SUGGESTED ISRAEL WAS TRYING TO DIVERT ATTENTION FROM THE CONTROVERSY OVER ITS DEPORTATION OF SOME 400 PALESTINIANS TO LEBANON SOME 2500 REFUGEES RETURNED TO GUATEMALA AFTER MORE THAN 10 YEARS IN MEXICO THE GROUP CROSSED OVER FROM CHIAPAS ONE OF THREE MEXICAN STATES WHERE 45000 REFUGEES HAVE RESIDED SINCE THE EARLY 1980S WHEN THEY FLED GUATEMALA'S CIVIL WAR UN OVERSEERS HOPE THAT 14000 REFUGEES CAN BE REPATRIATED THIS YEAR WINTER STORMS POUNDED NORTHERN CALIFORNIA OREGON AND WASHINGTON STATE CAUSING FLOODING MUDSLIDES AND POWER OUTAGES MEANWHILE AUTHORITIES SAID THE STORMS THAT DEVASTATED ARIZONA SOUTHERN CALIFORNIA AND BAJA CALIFORNIA FOR TWO WEEKS KILLED MORE THAN 40 PEOPLE AND CAUSED WELL OVER 100 MILLION IN PROPERTY DAMAGE THE CHERNOBYL NUCLEAR PLANT NEEDS URGENT REPAIRS COSTING MILLIONS OF DOLLARS TO REDUCE THE DANGER OF FIRE GERMAN SAFETY INSPECTORS TOLD A NEWS CONFERENCE THE INSPECTION TEAM COMMISSIONED BY THE EUROPEAN COMMUNITY TO STUDY THE PLANT IN UKRAINE SAID THE FACILITY'S REACTORS WERE UNFIT TO OPERATE BY WESTERN STANDARDS THE SOUTH AFRICAN GOVERNMENT BEGAN FIVE DAYS OF PRIVATE TALKS WITH THE AFRICAN NATIONAL CONGRESS ABOUT OBSTACLES DELAYING THE COUNTRY'S FIRST MULTIRACIAL ELECTIONS SPOKESMEN FOR BOTH SIDES SAID THEY HOPED THIS WOULD BE THE FINAL ROUND OF BARGAINING ABOUT THE RESUMPTION OF DEMOCRACY TALKS THAT BROKE DOWN IN JUNE HUNDREDS MORE US TROOPS RETURNED FROM SOMALIA AS 25000 AMERICAN SOLDIERS PREPARED TO REMAIN OVER 1100 MARINES HAVE DEPARTED IN THE PAST TWO DAYS US MILITARY AUTHORITIES MEANWHILE ANNOUNCED THAT 3000 ARMY ENGINEERS WOULD SPEND THE NEXT SIX WEEKS BUILDING AND REPAIRING 1200 MILES OF ROADS AND BRIDGES WHO'S EXECUTIVE BOARD REELECTED ITS JAPANESE DIRECTORGENERAL AMID CHARGES HE RESORTED TO THREATS AND VOTEBUYING TO BEAT A CHALLENGER BACKED BY THE WEST WORLD HEALTH ORGANIZATION HEAD HIROSHI NAKAJIMA WITH SUPPORT OF THIRD WORLD NATIONS DEFEATED THE ALGERIAN DEPUTY HE FIRED DIED AUDREY HEPBURN 63 THE ACADEMY AWARDWINNING ACTRESS KNOWN FOR HER CHARM AND ELEGANCE IN FILMS SUCH AS MY FAIR LADY AND ROMAN HOLIDAY IN TOLOCHENAZ SWITZERLAND OF COLON CANCER 9301210035 930121 COMMODITES PLATINUM AND PALLADIUM FUTURES PRICES GAIN ON CONCERN OF TIGHTENING SUPPLIES IN THE CIS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PLATINUM FUTURES PRICES SURGED MORE THAN 6 AN OUNCE AMID CONCERN ABOUT TIGHTENING SUPPLY IN THE COMMONWEALTH OF INDEPENDENT STATES SUPPLIES ARE CRITICALLY TIGHT SAID BERNARD SAVAIKO SENIOR METALS ANALYST WITH PAINEWEBBER FOR THE ACTIVELY TRADED APRIL CONTRACT PLATINUM FUTURES PRICES SETTLED 620 HIGHER AT 36360 AN OUNCE THE HIGHEST LEVEL SINCE DEC 18 AND WELL ABOVE THE YEAREND FINISH OF 35260 AN OUNCE PALLADIUM ALSO PUT IN A STRONG PERFORMANCE WITH THE MARCH CONTRACT CLOSING 220 HIGHER AT 10770 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE ANALYSTS AND TRADERS SAID THE SUPPLY OF PLATINUM AND PALLADIUM PRECIOUS METALS WITH RELATIVELY BROAD INDUSTRIAL APPLICATION APPEARED TO BE TIGHTENING IN THE SPOT OR CASH MARKET AS A RESULT OF LOWER NICKEL PRODUCTION IN THE CIS PLATINUM AND PALLADIUM ARE BYPRODUCTS OF NICKEL CIS NICKEL PRODUCTION WAS ESTIMATED TO HAVE FALLEN 15 IN 1992 AND MANY ANALYSTS NOW EXPECT A FURTHER DROP OF 10 THIS YEAR THERE'S A PERCEPTION THAT PLATINUMGROUP METALS' SUPPLY OUT OF RUSSIA WILL CONTINUE TO DECLINE MR SAVAIKO SAID RUSSIA'S SHARE OF WORLDWIDE PLATINUM SALES WAS ROUGHLY 19 IN 1992 DOWN FROM 26 IN 1991 FOR PALLADIUM RUSSIA ACCOUNTED FOR ABOUT 53 OF WORLDWIDE SALES IN 1992 DOWN FROM 54 IN 1991 WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH SAID THAT AMONG THE FACTORS POWERING PLATINUM'S GAIN WAS STRONG DEMAND FROM JEWELERS IN JAPAN AND CHINA TRADERS MR O'NEILL SAID WILL BE TRACKING CLOSELY THE TERMS OF SHIPPING ARRANGEMENTS BETWEEN PRODUCERS IN THE CIS AND JAPANESE BUYERS FOR FURTHER SIGNALS OF POTENTIAL MARKET TIGHTENING GOLD FUTURES PRICES WHICH HAVE BEEN MARGINALLY FIRMER IN RECENT DAYS MOVED 120 HIGHER FOR FEBRUARY DELIVERY TO SETTLE AT 32980 AN OUNCE ON THE ACTIVELY TRADED CONTRACT PAINEWEBBER'S MR SAVAIKO SAID GOLD WAS PUSHED GRUDGINGLY HIGHER BY THE MOVES IN PLATINUM AND PALLADIUM INDUSTRY EXPERTS SAID SOME OF THE RECENT GAINS COULD BE ATTRIBUTED TO MARKET CONCERN ABOUT A POTENTIAL PICKUP IN INFLATION AS THE CLINTON ADMINISTRATION TAKES OFFICE FOR NOW HOWEVER NEARLY ALL LEADING INDICATORS ON INFLATION SUGGEST THAT PRICES WILL NOT MOVE SHARPLY HIGHER EVEN IF THE NEW ADMINISTRATION PUSHES THROUGH A MULTIBILLION DOLLAR FISCAL STIMULUS PACKAGE EARLY ON GOLD IS ALSO BEING SUPPORTED BY EXPECTATIONS THAT JAPAN WILL SEEK TO ISSUE A COMMEMORATIVE GOLD COIN FOR THE COMING WEDDING OF CROWN PRINCE NARUHITO SILVER FUTURES PRICES FOR MARCH DELIVERY CLOSED 45 CENTS HIGHER AT 3738 AN OUNCE ON THE NEW YORK COMMODITY EXCHANGE IN OTHER COMMODITY MARKETS YESTERDAY COFFEE COFFEE FUTURES PRICES CONTINUED THEIR POSTNEW YEAR SLUMP SKIDDING 110 CENTS TO 6450 CENTS A POUND FOR MARCH DELIVERY ON THE COFFEE SUGAR AND COCOA EXCHANGE SINCE JAN 1 COFFEE FUTURES PRICES HAVE TUMBLED ON AVERAGE AROUND TWO CENTS A POUND EACH DAY IN A DEPRESSED MARKET ANALYSTS SAID TRADERS REMAIN CONCERNED ABOUT GLUTTED MARKET CONDITIONS ABOUT THE OUTCOME OF UPCOMING TALKS ON EXPORT QUOTAS AND ABOUT THE ULTIMATE SIZE OF BRAZIL'S CROP THIS SEASON BRAZIL IS THE WORLD'S LARGEST COFFEE PRODUCER THERE IS CONSIDERABLE DEBATE WHETHER ITS CURRENT CROP WILL BE MARGINALLY OR SIGNIFICANTLY HIGHER THAN THE 199293 CROP YEAR FOR NOW ALL EYES ARE TURNED TO LONDON WHERE PRODUCERS AND CONSUMER NATIONS WILL SOON TRY TO PATCH TOGETHER AN EXPORT ACCORD AIMED AT STABILIZING PRICES THUS FAR ANALYSTS SAID THERE IS LITTLE SIGN THAT PRODUCERS WILL MAKE PROGRESS TOWARD SUCH AN ACCORD WHEN THEY MEET TODAY IN LONDON A FULL MEETING OF THE INTERNATIONAL COFFEE ORGANIZATION INVOLVING BOTH PRODUCER AND CONSUMER NATIONS IS SCHEDULED TO BEGIN THERE MONDAY ENERGY PETROLEUM FUTURES PRICES FELL AS OIL MARKETS REACTED NEGATIVELY TO A BEARISH INDUSTRY REPORT ON US FUEL AND CRUDE INVENTORIES THE REPORT RELEASED LATE TUESDAY AFTER FUTURES TRADING HAD CLOSED SHOWED A DROP OF ONLY 688000 BARRELS IN INVENTORIES OF HEATING OIL AND OTHER DISTILLATES LAST WEEK MUCH LESS OF A DECLINE THAN EXPECTED ALSO GASOLINE INVENTORIES JUMPED NEARLY SIX MILLION BARRELS MUCH MORE THAN ANTICIPATED WHILE CRUDE OIL STOCKS ROSE A SURPRISING 78 MILLION BARRELS LARGELY AS A RESULT OF THE REPORT HEATING OIL LED THE WAY DOWN YESTERDAY IN FUTURES TRADING ON THE NEW YORK MERCANTILE EXCHANGE HEATING OIL FOR FEBRUARY DELIVERY SETTLED 126 CENTS LOWER AT 5168 CENTS A GALLON WHILE FEBRUARY GASOLINE DROPPED 070 CENT TO 5234 CENTS A GALLON FEBRUARY CRUDE FELL 25 CENTS TO 1833 A BARREL BUT NATURAL GAS FUTURES ROSE WITH THE FEBRUARY CONTRACT SURGING AN EVEN EIGHT CENTS TO 1631 A MILLION BRITISH THERMAL UNITS ABOUT 1000 CUBIC FEET GRAINS & SOYBEANS AN APPARENT LACK OF PROGRESS IN NEGOTIATING AN AGREEMENT ON DIVISION OF OLD SOVIET UNION DEBT PUSHED GRAIN FUTURES PRICES DOWN THE WHEAT CONTRACT FOR MARCH DELIVERY FELL TWO CENTS TO 3905 A BUSHEL AT THE CHICAGO BOARD OF TRADE WHILE THE MARCH SOYBEAN CONTRACT WAS DOWN 25 CENTS TO 58375 A BUSHEL ON TUESDAY RUMORS THAT RUSSIA AND UKRAINE HAD REACHED AN AGREEMENT ON DIVISION OF OLD USSR DEBT HELPED MOVE WHEAT FUTURES PRICES SHARPLY HIGHER BUT SIGNS OF MORE PROGRESS WEREN'T APPARENT YESTERDAY ANALYSTS SAID AN AGREEMENT IS NEEDED BEFORE RUSSIA'S ESTIMATED 205 MILLION IN DELINQUENT PAYMENTS ON GRAINIMPORT OBLIGATIONS CAN BE RESCHEDULED 9301210034 930121 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT ALABAMA POWER CO 125 MILLION OF FIRST MORTGAGE BONDS DUE JAN 1 2003 WON IN COMPETITIVE BIDDING BY BANKERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 7 AT 98723 TO YIELD 7181 THE BONDS NONCALLABLE FOR FIVE YEARS WERE PRICED AT A SPREAD OF 060 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP ALABAMA POWER IS A UNIT OF SOUTHERN CO CHAMPION INTERNATIONAL CORP 200 MILLION OF NOTES DUE DEC 15 1999 PRICED AS 770 AT 9976 TO YIELD 7743 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 150 POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CITICORP 400 MILLION OF SUBORDINATED NOTES DUE FEB 1 2003 PRICED AT PAR TO YIELD 8 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 143 POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY CITICORP SECURITIES MARKETS INC FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF NOTES DUE JAN 29 2003 WAS PRICED AT PAR TO YIELD 705 THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 047 POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS HJ HEINZ CO 200 MILLION OF NOTES DUE JAN 15 2003 PRICED AS 6 7/8 AT 9975 TO YIELD 691 THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 034 POINT ABOVE THE TREASURY 10YEAR NOTE RATED DOUBLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO AUSTIN TEXAS 128 MILLION OF SERIES 1993 COMBINED UTILITY SYSTEM REVENUE REFUNDING BONDS PRICED BY A MORGAN STANLEY & CO GROUP YIELDS RANGE FROM 275 IN 1993 TO 615 IN 2018 THE CAPITAL APPRECIATION BONDS HAVE YIELD TO MATURITIES OF 625 IN 2007 TO 635 IN 2010 THE BONDS ARE INSURED BY MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P GUAM AIRPORT AUTHORITY 2479 MILLION OF SERIES A AND B GENERAL REVENUE BONDS PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP YIELDS RANGE FROM 390 IN 1994 TO 6748 IN 2023 THE BONDS ARE RATED TRIPLEB BY S&P GENERAL NUTRITION COS INITIAL OFFERING OF 44 MILLION COMMON SHARES PRICED AT 16 EACH THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO SUN TELEVISION & APPLIANCES INC ONE MILLION COMMON SHARES PRICED AT 3550 EACH THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES GOLD 1472 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1483 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REMIC SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993G5 IS BACKED BY GINNIE MAE 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2975 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 750 MILLION OF REMIC SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 199317 IS BACKED BY FANNIE MAE 8 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 8625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2967 YEARS CONFEDERATION LIFE INSURANCE CO CANADA 100 MILLION OF 9 7/8 SUBORDINATED EUROBONDS DUE MARCH 3 2003 AT ISSUE PRICE 9980 VIA BARCLAYS DE ZOETE WEDD REOFFERED AT 9830 TO YIELD 150 POINTS ABOVE UK TREASURY 9 3/4 DUE 2002 FEES 2 SWEDISH EXPORT FINANCE SWEDEN 100 MILLION CANADIAN DOLLARS OF 8 EUROBONDS DUE FEB 18 1998 AT ISSUE PRICE 10070 VIA WOOD GUNDY INC REOFFERED AT 99075 TO YIELD 820 MARGIN 072 POINT ABOVE CANADIAN GOVERNMENT'S 6 1/4 BONDS DUE 1998 FEES 1 7/8 TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 100 MILLION 5 3/8 EUROBONDS DUE JAN 19 1996 AT ISSUE PRICE 101375 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 1001875 TO YIELD 5237 SEMIANNUALLY MARGIN 3/8 POINT ABOVE TREASURY'S 5 1/8 DUE 1995 NOTES WILL TRADE INTERCHANGEABLY WITH 300 MILLION OF IDENTICAL OUTSTANDING NOTES FEES 1 3/8 L'AUXILIAIRE DU CREDIT FONCIER DE FRANCE FRENCH PARENT 100 MILLION OF SUBORDINATED FLOATINGRATE NOTES DUE FEB 18 2003 AT 99875 VIA KIDDER PEABODY LTD COUPON WILL FLOAT AT A MARGIN OF 1/8 POINT BELOW THE SIXMONTH LONDON INTERBANK OFFERED RATE MINIMUM COUPON OF 5 AND A MAXIMUM COUPON OF 9 1/8 GUARANTEED BY CREDIT FONCIER DE FRANCE FEES 1/2 EUROPEAN INVESTMENT BANK SUPRANATIONAL 10 BILLION SPANISH PESETAS OF 1170 EUROBONDS DUE FEB10 2003 AT AN ISSUE PRICE OF 10128 TO YIELD 1178 ANNUALLY AFTER EXCLUDING FEES VIA BANESTO FEES 1 3/4 EUROPEAN INVESTMENT BANK 200 MILLION MARKS OF 7 3/4 EUROBONDS DUE FEB 10 2003 AT AN ISSUE PRICE OF PAR VIA TRINKHAUS & BURKHARDT COUPON WILL BE 9 FOR THE FIRST YEAR AND THEN IT WILL FLOAT AT 13 MINUS THE SIXMONTH DEUTSCHE MARK LONDON INTERBANK OFFERED RATE FEES 030 CREDIT FONCIER DE FRANCE FRANCE ONE BILLION FRANCS OF 7 3/4 EUROBONDS DUE FEB 25 2003 AT PAR VIA BNP CAPITAL MARKETS LTD PARTLY PAID 40 OF THE PRICE IS DUE FEB 25 AND THE REMAINING 60 IS DUE FEB 25 1994 FEES 0478 BANQUE NATIONALE DE PARIS FRANCE ONE BILLION FRANCS OF 8 1/4 EUROBONDS DUE FEB 17 2000 AT ISSUE PRICE 101344 VIA BNP CAPITAL MARKETS LTD REOFFERED AT 99794 TO YIELD A MARGIN OF 055 POINT ABOVE THE COMPARABLE FRENCH TREASURY FEES 0325 9301210033 930121 TECHNOLOGY US CUTS DUTIES ON SOME JAPANESE COMPUTER SCREENS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE COMMERCE DEPARTMENT SAID IT PLANS TO REVOKE ANTIDUMPING DUTIES ON IMPORTS OF CERTAIN JAPANESEMADE DISPLAY SCREENS COMMONLY USED IN LAPTOP COMPUTERS THE DECISION FOLLOWS A CAMPAIGN BY MAJOR COMPUTER MAKERS TO GET THE TARIFFS LIFTED COMPANIES THAT BUY DISPLAY SCREENS INCLUDING APPLE COMPUTER INC INTERNATIONAL BUSINESS MACHINES CORP ROCKWELL INTERNATIONAL CORP AND SUN MICROSYSTEMS INC SUPPORTED A LIFTING OF THE DUTIES THE DEPARTMENT CITING CHANGED CIRCUMSTANCES MADE ITS DECISION AFTER THE SOLE REMAINING US MAKER OF THE SCREENS RECENTLY ASKED THE COMMERCE DEPARTMENT TO ELIMINATE THE TARIFF IT SAID THE TARIFFS SHOULD BE LIFTED NEXT MONTH THE COMMERCE DEPARTMENT AND INTERNATIONAL TRADE COMMISSION RULED IN FAVOR OF US MAKERS OF CERTAIN COMPUTER DISPLAY SCREENS IN 1991 SAYING JAPANESE MAKERS WERE SELLING THEIR PRODUCTS BELOW COST OR DUMPING THE COMMISSION AN INDEPENDENT AGENCY THAT IMPOSES TARIFFS IF IT FINDS US COMPANIES ARE HURT BY DUMPING LEVIED A 627 TARIFF ON A PRODUCT KNOWN AS ACTIVEMATRIX LIQUID CRYSTAL DISPLAYS AND A 7 DUTY ON IMPORTED ELECTROLUMINISCENT DISPLAYS THE DECISION TO LIFT THE TARIFFS AFFECTS THE DUTY ON THE ACTIVEMATRIX LIQUID CRYSTAL DISPLAYS WHICH ARE A MAJOR TYPE OF THESE THIN ELECTRONIC SCREENS THE TARIFF ON ELECTROLUMINISCENT DISPLAYS A LESSPREVALENT TECHNOLOGY REMAINS IN EFFECT CLOSELY HELD GUARDIAN INDUSTRIES CORP OF NORTHVILLE MICH ASKED THE COMMERCE DEPARTMENT TO REVOKE THE TARIFF LATE LAST YEAR BECAUSE THE COMPANY HAD RECEIVED NEW CONTRACTS FOR USING THE SCREEN IN AVIONICS THERE ALSO WAS SPECULATION THAT THE COMPANY CHANGED ITS POSITION AFTER RECEIVING NEW BUSINESS FROM APPLE COMPUTER WHICH HAD ATTACKED THE TARIFF FOR RAISING THE PRICE OF FLAT PANELS GUARDIAN CONTROLS THE ONLY US MAKER OF ACTIVEMATRIX DISPLAYS OIS OPTICAL IMAGING SYSTEMS INC APPLE COMPUTER INC SPOKESMAN CHRISTOPHER ESCHER APPLAUDED THE MOVE WE'RE PLEASED WITH THE DECISION HE SAID THE DECISION MAKES THE TERRAIN MORE REFLECTIVE OF MARKET REALITY IT WILL ALLOW APPLE TO BE MORE COMPETITIVE IN WORLD MARKETS ON A MANUFACTURINGCOST BASIS LAST MONTH SOON AFTER GUARDIAN ASKED THAT THE TARIFFS BE LIFTED A FEDERAL COURT RULED THAT THE COMMISSION IMPROPERLY IMPOSED THE DUTIES ON THE JAPANESEMADE DISPLAY SCREENS IN ITS DECISION TO LIFT THE TARIFFS THE COMMERCE DEPARTMENT SAID THAT IT COULDN'T IDENTIFY ANY US MAKERS OF ACTIVEMATRIX DISPLAYS OTHER THAN GUARDIAN 9301210032 930121 ENTERPRISE FOUR COMPANIES HOPE TO TURN CUSTOMERS INTO ACTIVISTS PLAN TO BAND TOGETHER IN BID FOR SMALLER MILITARY BUDGET COULD BACKFIRE BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL FOUR ENTREPRENEURIAL COMPANIES ARE JOINING FORCES FOR AN UNUSUAL REASON THEY WANT TO TURN THEIR US CUSTOMERS INTO POLITICAL ACTIVISTS SOMETIMES WITH HELP FROM THEIR FRANCHISEES BEN & JERRY'S HOMEMADE INC BODY SHOP INTERNATIONAL PLC WORKING ASSETS LONG DISTANCE AND JUST DESSERTS ARE ANNOUNCING THEIR HAVE A HEART CAMPAIGN THIS WEEK THE COMPANIES AIM TO PERSUADE CONSUMERS TO LOBBY AGAINST WHAT THEY CONSIDER TO BE MISPLACED PRIORITIES IN THE FEDERAL BUDGET ENTREPRENEURIAL COMPANIES OFTEN DOMINATED BY ONE OR TWO INDIVIDUALS WITH STRONG POINTS OF VIEW COMMONLY FEEL FREER THAN BIG CORPORATIONS TO PUSH BROAD SOCIETAL CONCERNS BUT EVEN FOR ACTIVIST COMPANIES A COORDINATED EFFORT TO ORGANIZE CUSTOMERS FOR POLITICAL GOALS IS RARE AND CONTROVERSIAL THOUGH EACH OF THE FOUR CONCERNS HAS INDIVIDUALLY PROMOTED POLITICAL CAUSES BEFORE THE CAMPAIGN IS THE FIRST TIME THAT THE FIRMS ARE BANDING TOGETHER IN A NATIONWIDE EFFORT STARTING MONDAY THE CONCERNS WILL GIVE THEIR CUSTOMERS LITERATURE ABOUT THE US BUDGET PREPARED BY THE CAMPAIGN FOR NEW PRIORITIES A NONPROFIT GROUP IN WASHINGTON THE COMPANIES ALSO WILL ASK CONSUMERS TO CALL OR WRITE CONGRESSIONAL REPRESENTATIVES WITH THIS MESSAGE SUPPORT POLICIES THAT CUT AMERICA'S MILITARY SPENDING AND SPEND MORE ON HELPING CHILDREN THE ELDERLY THE SICK THE HOMELESS AND THE UNEMPLOYED THE CAMPAIGN COULD BACKFIRE CUSTOMERS MAY RESENT MIXING BUSINESS WITH POLITICS THE DRIVE ALSO MAY PREACH TO THE CONVERTED INCLUDING THE NATION'S NEW PRESIDENT WHO GENERALLY SUPPORTS ITS TENETS PEOPLE ARE EXCITED ABOUT CLINTON AND WANT TO GIVE HIM A CHANCE OBSERVES ELLIOT HOFFMAN COOWNER OF JUST DESSERTS WHICH SELLS DESSERTS AND BAKERY PRODUCTS THROUGH EIGHT SAN FRANCISCOAREA STORES THEY MAY NOT TAKE KINDLY TO PEOPLE TELLING HIM WHAT TO DO MR HOFFMAN AND HIS FELLOW ORGANIZERS CONTEND THEIR CAMPAIGN NEVERTHELESS IS NECESSARY BECAUSE MANY AMERICANS HAVE STOPPED DEBATING ABOUT MILITARY SPENDING THE US STILL HAS A VERY BIG DEFENSE BUDGET HIGHER THAN THE AVERAGE SPENT DURING THE COLD WAR SAYS PETER BARNES PRESIDENT OF WORKING ASSETS A SAN FRANCISCO PROVIDER OF LONGDISTANCE SERVICES AND CREDIT CARDS MR BARNES POINTS OUT THAT THE US MILITARY BUDGET THIS FISCAL YEAR FOUR YEARS AFTER THE FALL OF THE BERLIN WALL WILL TOTAL 286 BILLION COMPARED WITH AN ANNUAL AVERAGE OF 270 BILLION ADJUSTED FOR INFLATION BETWEEN THE KOREAN WAR AND THE REAGAN ADMINISTRATION THE FEDERAL FISCAL YEAR ENDS SEPT 30 WE NEED TO PUSH THE DEBATE IN CONGRESS AND ACCELERATE THE CONVERSION TO A PEACETIME ECONOMY MR BARNES ADDS THE WHOLE IDEA IS TO USE STOREFRONTS FOR AN ONGOING DISCUSSION ABOUT NATIONAL ISSUES EXPLAINS ANITA RODDICK FOUNDER AND MANAGING DIRECTOR OF BRITAIN'S BODY SHOP THE CHAIN SELLS NATURALBASED SKIN AND HAIRCARE PRODUCTS THROUGH 119 COMPANYOWNED AND FRANCHISED STORES IN THE US BY COLLABORATING WITH OTHER COMPANIES THAT FAVOR AN ACTIVIST SOCIAL ROLE SHE CONTINUES WE'RE EXPANDING THAT FORUM MR HOFFMAN OF JUST DESSERTS AGREES THERE IS STRENGTH IN NUMBERS MOST OF US DON'T HAVE THE RESOURCES TO DO THIS ALONE HE ALSO SAYS THAT MOST OF HIS CUSTOMERS HAVE ACCEPTED THE NOTION THAT BUSINESSES SHOULD BE SOCIALLY RESPONSIBLE AT JUST DESSERTS' STORES MR HOFFMAN PLANS TO DISTRIBUTE FLIERS PROMOTING ALTERED PRIORITIES FOR THE FEDERAL BUDGET THE STORES ALSO WILL HAND OUT VALENTINE'S DAY POSTCARDS THAT CONSUMERS CAN SEND TO CONGRESS EACH CARD DESIGNED BY BODY SHOP URGES REDUCED MILITARY EXPENDITURES BY SHOWING A ROCKET SLOWLY TURNING INTO A HEART HAVE A HEART THE POSTCARD READS THE CARD ALSO INCLUDES A QUOTE FROM PRESIDENT EISENHOWER EVERY WARSHIP LAUNCHED EVERY ROCKET FIRED SIGNIFIES A THEFT FROM THOSE WHO ARE NOT FED THOSE WHO ARE NOT CLOTHED IN THE PAST BODY SHOP AND ITS FRANCHISEES HAVE DISTRIBUTED LITERATURE AND DONATED MONEY TO HELP WORLDWIDE CAMPAIGNS ON ISSUES SUCH AS THE ENVIRONMENT AND HUMAN RIGHTS LAST FALL THE COMPANY SIGNED UP 50000 US VOTERS THROUGH A REGISTRATION DRIVE A BODY SHOP SPOKESWOMAN SAYS FOR THE NEW JOINT CAMPAIGN BODY SHOP AND ITS FRANCHISEES WILL DISTRIBUTE LITERATURE AND POSTCARDS AT EVERY US STORE THE SPOKESWOMAN ADDS IN ADDITION SOME STORES WILL WORK WITH COMMUNITY GROUPS TO ORGANIZE PETITIONS FAVORING REDUCED MILITARY SPENDING OTHER STORES WILL HELP SCHOOLS DISPLAY CHILDREN'S ARTWORK GEARED TO THE CAMPAIGN JUST BEFORE VALENTINE'S DAY A NUMBER OF BODY SHOP EMPLOYEES WILL PERSONALLY DELIVER THE VALENTINE'S POSTCARDS TO MEMBERS OF CONGRESS AT THEIR HOME STATE OFFICES ACCORDING TO THE SPOKESWOMAN BEN & JERRY'S A WATERBURY VT ICECREAM MAKER LONG ACTIVE IN POLITICAL CAUSES SAYS IT INTENDS TO CONDUCT A SIMILAR PROGRAM WORKING ASSETS LONG DISTANCE THE ONLY CAMPAIGN PARTICIPANT WITHOUT STOREFRONTS SAYS THAT IT PLANS TO USE ITS 65000 MONTHLY CUSTOMERS' BILLS TO PREACH ABOUT MILITARY OVERSPENDING AND THE NEED TO REVAMP FEDERAL SPENDING PRIORITIES IN ADDITION IF CUSTOMERS CHECK A BOX ON THEIR BILLS WORKING ASSETS WILL SEND MAILGRAMS ABOUT THE ISSUE TO HOUSE AND SENATE MEMBERS THE COMPANY SAYS THAT IT ALSO WILL OFFER EVERY SUBSCRIBER A FREE CALL TO THEIR CONGRESSIONAL REPRESENTATIVES ON THE SUBJECT STILL THE PARTICIPATING COMPANIES ADMIT TO A CERTAIN NERVOUSNESS ABOUT BUSINESSES DOING POLITICS INSTEAD OF CONSUMERISM AS MS RODDICK PUTS IT LAST YEAR A BODY SHOP CAMPAIGN APPARENTLY COST THE CHAIN A WOULDBE FRANCHISE THE CONCERN USED ITS MAILORDER CATALOG TO ASK CUSTOMERS TO READ AND SUBSCRIBE TO MOTHER JONES AN ACTIVIST AND OFTENCONTROVERSIAL MAGAZINE ONE POTENTIAL FRANCHISEE WHO DISLIKED THE MAGAZINE'S POLITICS DECIDED AGAINST AFFILIATING WITH BODY SHOP MS RODDICK RECALLS AND SOME CONSUMERS UNHAPPY OVER THE MOTHER JONES CAMPAIGN ASKED TO HAVE THEIR NAMES REMOVED FROM THE CATALOG MAILING LIST SHE ADDS SIMILARLY WHEN BODY SHOP LAUNCHED ITS VOTER REGISTRATION DRIVE IN THE FALL SOME SOUTHERN MALL OPERATORS ASKED THE RETAILER TO AVOID PUBLIC AREAS AND INSTEAD CONDUCT THE DRIVE INSIDE ITS STORES THE OPERATORS WERE NERVOUS ABOUT TURNING THEIR MALLS INTO CENTERS OF CITIZEN ACTION MS RODDICK SAYS EVEN SO THE BODY SHOP FOUNDER VIEWS THE NEW COLLABORATIVE CAMPAIGN AS A WORTHWHILE POLITICAL EXPERIMENT TO SEE WHETHER SMALL COMPANIES CAN WORK TOGETHER TO INFLUENCE GOVERNMENT POLICY IF THE DRIVE SUCCEEDS SHE PREDICTS THE AMERICAN PUBLIC WILL SEE MORE SUCH INITIATIVES 9301210031 930121 NAVISTAR UAW REACH TENTATIVE ACCORD ON NEW CONTRACT IN A BIG STEP FOR FIRM BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO NAVISTAR INTERNATIONAL CORP AND THE UNITED AUTO WORKERS UNION SAID THEY REACHED TENTATIVE AGREEMENT ON A NEW CONTRACT FOR 7600 WORKERS THE SECOND BIG STEP IN THE COMPANY'S ATTEMPT TO AVOID INSOLVENCY IF APPROVED BY UAW MEMBERS AND IF A DECEMBER AGREEMENT TO CURTAIL BENEFITS SHARPLY FOR SOME 63000 RETIREES IS APPROVED LATER THIS YEAR NAVISTAR WOULD BE WELL ON THE WAY TOWARD ITS GOAL OF CUTTING 150 MILLION FROM ITS HEALTHCARE COSTS AND 50 MILLION FROM OPERATING COSTS ANNUALLY ALTHOUGH NEITHER SIDE WOULD RELEASE DETAILS UNTIL THE WORKERS HAVE A CHANCE TO VOTE THE CONTRACT ACCORD WAS UNDERSTOOD TO CONTAIN THREE MAJOR CONCESSIONS THAT WOULD HELP THE MAKER OF MEDIUM AND HEAVYDUTY TRUCKS CUT COSTS IN ITS CURRENT OPERATIONS NEGOTIATING IN LOUISVILLE KY THE TWO SIDES WERE SAID TO HAVE AGREED TO ELIMINATE A PRACTICE THAT CALLS FOR THE COMPANY TO RECALL ONE LAIDOFF WORKER FOR EVERY TWO WHO RETIRE AND TO ELIMINATE AN HOURLY PENALTY THE COMPANY HAD TO PAY FOR EXCESSIVE OVERTIME IN ADDITION THE NEGOTIATORS APPARENTLY AGREED TO A MANAGEDCARE PROGRAM UNDER WHICH THE COMPANY COULD SAVE MONEY BY LIMITING WORKERS' HEALTHCARE OPTIONS TO SPECIFIC PROVIDERS THE NEGOTIATIONS AMOUNTED TO AN EARLY OPENING OF A THREEYEAR CONTRACT THAT DOESN'T EXPIRE UNTIL NEXT FALL A BARGAIN WAS STRUCK RELATIVELY QUICKLY PARTLY BECAUSE THE TWO SIDES HAD AGREED ON BASIC PARAMETERS WHEN THEY NEGOTIATED THE RETIREE HEALTHCARE ISSUES LAST MONTH THE ACCORDS MEAN A SHARP TURN AWAY FROM THE SOCALLED PATTERN AGREEMENTS THE UAW HAS NEGOTIATED WITH NAVISTAR AND OTHER COMPANIES IN THE PAST BUT AT THE SAME TIME THE UNION HAS MADE IT CLEAR IT SEES NAVISTAR AS A SPECIAL CASE BECAUSE OF ITS FINANCIAL TROUBLES EARLIER THIS MONTH FOR EXAMPLE UAW PRESIDENT OWEN BIEBER SAID THE UNION WON'T GIVE THE SAME BREAK ON RETIREE HEALTHCARE COSTS TO GENERAL MOTORS CORP THERE IS NO SECRET THAT NAVISTAR WAS ON A BANANA PEEL AND A HALFSTEP FROM BANKRUPTCY HE SAID UNDER THE DECEMBER AGREEMENT THE UAW AGREED TO SHIFT 16 BILLION IN FUTURE MEDICAL COSTS TO RETIREES AND THEIR SPOUSES IN RETURN NAVISTAR AGREED TO GIVE A 50 STAKE IN THE COMPANY TO A NEW TRUST FUND TO BE SET UP TO GUARANTEE THE REMAINING RETIREE BENEFITS BECAUSE THE TWO SIDES HAD SUED EACH OTHER OVER THE RETIREE CUTBACKS THAT AGREEMENT IS SUBJECT TO APPROVAL BY VARIOUS GROUPS OF RETIREES AND BY A FEDERAL COURT IN DAYTON OHIO EVERYONE'S KIND OF SHARING IN THE PAIN HERE FOR THE BETTERMENT OF THE COMPANY SAID GARY MCMANUS AN ANALYST AT KEMPER SECURITIES INC IN CHICAGO MR MCMANUS SAID THAT WITH THE CURRENT STRONG UPTURN IN THE MARKET FOR HEAVY TRUCKS NAVISTAR COULD APPROACH BREAK EVEN IN ITS FIRST QUARTER ENDING JAN 31 AFTER 10 CONSECUTIVE QUARTERLY LOSSES NEAL TEMPLIN IN DETROIT CONTRIBUTED TO THIS ARTICLE 9301210030 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS GETTING PERSONAL BILL AND AL CAN WE TALK HOW DO YOU RELAX WHAT KIND OF CAR DO YOU DRIVE WHAT'S YOUR FAVORITE TELEVISION PROGRAM TO FIND OUT WHAT OUR NEW LEADERS ARE REALLY LIKE THE WALL STREET JOURNAL PUT THESE AND OTHER QUESTIONS TO MESSRS CLINTON AND GORE HERE ARE THEIR ANSWERS WHAT FIGURE HAD THE GREATEST INFLUENCE ON THE DEVELOPMENT OF YOUR OWN POLITICAL THINKING CLINTON MARTIN LUTHER KING JR BECAUSE HE LEAD THE CIVILRIGHTS CAUSE IN A WAY APPEALING TO UNIVERSAL VALUES PULLING PEOPLE TOGETHER TO GET THE RIGHT SIDE OF HISTORY WHICH US PRESIDENT WOULD YOU LEAST LIKE TO RESEMBLE CLINTON HARDING FOR HIS CORRUPT ADMINSTRATION DEVOID OF ACCOMPLISHMENT VISION AND DIRECTION WHAT'S THE SINGLE GREATEST ACCOMPLISHMENT THE US POLITICAL SYSTEM HAS ACHIEVED DURING YOUR LIFETIME CLINTON CIVILRIGHTS REVOLUTION GORE EXPANSION OF CIVIL RIGHTS OVER THE SAME PERIOD WHAT HAS BEEN THE SYSTEM'S GREATEST FAILURE CLINTON INABILITY TO MAKE TOUGH CHOICES TO GUARANTEE AMERICA'S PREEMINENCE IN THE 20TH CENTURY AND KEEP THE AMERICAN DREAM ALIVE GORE FAILURE TO DEAL WITH THE CRISIS IN HEALTH CARE WHAT CONTEMPORARY AMERICAN LIBERAL DO YOU MOST ADMIRE CLINTON NEW YORK GOV MARIO CUOMO BEACUSE HE'S A GREAT SPOKESMAN FOR TRADITIONAL LIBERAL VALUES IN A WAY THAT EMBRACES PEOPLE AND MARIAN WRIGHT EDELMAN PRESIDENT AND FOUNDER OF THE CHILDREN'S DEFENSE FUND WHO HAS FOUGHT THE GOOD FIGHT FOR CHILDREN FOR 20 YEARS GORE MARIAN WRIGHT EDELMAN BECAUSE OF HER PERSONAL ACHIEVEMENTS AND COMPASSIONATE AND EFFECTIVE ADVOCACY FOR CHILDREN WHAT CONTEMPORARY AMERICAN CONSERVATIVE DO YOU ADMIRE MOST CLINTON CARROLL CAMPBELL A DEEPLY CONSERVATIVE PERSON WHO DEALS WITH THE WORLD THE WAY IT IS AND REACHES OUT TO PEOPLE GORE BARRY GOLDWATER SERVING WITH HIM IN THE SENATE ENABLED ME TO LEARN A GREAT DEAL ABOUT HIS PHILOSOPHY CONVICTIONS AND INTEGRITY WHAT IS YOUR PROUDEST ACCOMPLISHMENT IN POLITICS CLINTON EDUCATION PLAN TO INCREASE EDUCATIONAL OPPROTUNITIES GORE HELPING CREATE IN OUR NATION A BETTER UNDERSTANDING OF THE TRUE NATURE OF STRATEGIC STABILITY IN ARMS CONTROL AND A BETTER UNDERSTANDING OF THE TRUE NATURE OF THE GLOBAL ENVIRONMENTAL CRISIS WHAT DO YOU FEEL IS THE WORST MISTAKE YOU HAVE EVER MADE IN POLITICS CLINTON SPEECH AT ATLANTA DEMOCRATIC CONVENTION 1988 ALSO BEING TOO BULLHEADED TO ADMIT MY MISTAKES IN MY FIRST TERM GORE BEATING BILL CLINTON IN MINATURE GOLF WHAT TWO FOREIGN LEADERS DO YOU ADMIRE MOST AND WHY CLINTON MIKHAIL GORBACHEV BECAUSE HE HAD THE COURAGE TO SET IN MOTION FORCES TO CHANGE WHICH HE HAD TO KNOW MIGHT ULTIMATELY DESTROY HIM AND NELSON MANDELA FOR REASONS OF CHARACTER AND DEDICATION THOUGH I HOPE HE'LL SHED SOME OF HIS ANTIQUATED ECONOMIC IDEAS GORE GRO HARLEM BRUNDTLAND PRIME MINISTER OF NORWAY BECAUSE OF HER STRONG AND CLEAR VISION OF THE NECESSITY FOR THE WORLD TO RESPOND TO THE GLOBAL ENVIRONMENTAL CRISIS CARLOS SALINAS DE GORTARI PRESIDENT OF MEXICO FOR PROVING THT A 40YEAROLD HARVARD GRADUATE FROM THE SOUTH CAN INDEED MAKE A GREAT PRESIDENT WHAT IS YOUR FAVORITE TELEVISION SHOW HOW MANY BOOKS HAVE YOU READ THIS YEAR WHAT BOOK OTHER THAN THE BIBLE THAT YOU HAVE EVER READ HAS BEEN MOST IMPORTANT TO YOU WHY CLINTON FORTY MEDITATIONS OF MARCUS AURELIUS BECAUSE THE GUY WAS A PERSON WHO BELIEVED IN THE OBLIGATION TO LIVE A GOOD LIFE BUT WAS ALSO A SYMPATHETIC AND UNDERSTANDING FIGURE GORE EIGHT THE STRUCTURE OF SCIENTIFIC REVOLUTION BY THOMAS KUHN BECAUSE I READ IT AT A YOUNG AGE WHEN ITS CLEAR DESCRIPTION OF HOW LARGE CHANGES IN THINKING OCCUR MADE A BIG DIFFERENCE IN MY APPRECIATION OF MANY OTHER BOOKS WHICH I READ LATER MANY OF THOSE COULD HAVE JUST AS EASILY BEEN THE ANSWER TO THIS QUESTION HOW MANY MOVIES HAVE YOU SEEN IN THE LAST YEAR WHAT WOULD YOU SAY IS THE BEST MOVIE YOU HAVE EVER SEEN WHAT DO YOU DO FOR RELAXATION CLINTON GOLF RUNNING WHAT CAR OR CARS DO YOU OWN AND/OR DRIVE CLINTON 1967 MUSTANG CONVERTIBLE GORE PLYMOUTH VOYAGER VAN MERCURY SABLE SEDAN DO YOU KNOW YOUR IQ IF YOU DO WHAT IS IT IF YOU WEREN'T IN POLITICS WHAT FIELD WOULD YOU LIKE TO BE IN RIGHT NOW CLINTON RUN INTERNATIONAL BUSINESS OR MAKE TV DOCUMENTARIES OTHER THAN YOUR SPOUSE WHO ARE YOUR TWO CLOSEST PERSONAL FRIENDS CLINTON CAROLYN STALEY WHO USED TO LIVE NEXT DOOR WHEN I WAS A KID AND MAURICE SMITH WHO HEADS THE HIGHWAY DEPARTMENT IN ARKANSAS GORE MY FATHER AND FRANK HUNGER MY BROTHERINLAW WHAT SCIENTIST OR SCIENTIFIC DISCOVERY MOST CHANGED SOCIETY FOR THE BETTER DURING YOUR LIFETIME GORE THE COMPUTER WHAT AMERICAN EDUCATOR DO YOU ADMIRE MOST CLINTON JAIME ESCALANTE BECAUSE HE PROVED ALL CHILDREN CAN LEARN AND THAT LEARNING IS A FUNCTION MORE OF EFFORT THAN IQ ALSO ROBERT BINGSWANGER PRINCIPAL OF BOSTON LATIN GORE NEIL RUDENSTINE PRESIDENT OF HARVARD UNIVERSITY WHAT WAS THE MOST SUCCESSFUL ECONOMIC DECISION AMERICA MADE SINCE WORLD WAR II WHAT ECONOMIC DECISION WOULD YOU LIKE TO RESCIND CLINTON ON THE FIRST QUESTION THE GI BILL ON THE SECOND QUESTION THE 1981 TAX BILL BECAUSE IT UNLEASHED A FLOOD OF RED INK ON THE ECONOMY AND BEGAN A PERIOD OF SPECUALTION UNRELATED TO THE PRODUCTION OF GOODS AND SERVICES GORE FIRST QUESTION THE GI BILL SECOND QUESTION TRICKLEDOWN ECONOMICS WHAT EVENT BEFORE 1900 HELPED SHAPE YOUR VISION OF AMERICAN SOCIETY YOUR VIEW OF AMERICA'S PLACE IN THE WORLD WHAT MORE RECENT EVENT CLINTON ON THE FIRST TWO QUESTIONS NONE BECAUSE MOST OF THE THINGS THE US DID BEFORE 1900 WERE TOTALLY INCONSISTENT WITH THE GLOBAL ROLE I'D LIKE US TO PLAY OR WERE NARROW DISPUTES OVER TERRITORY ON THE THIRD QUESTION AMERICA'S 4 1/2DECADE STANCE AGAINST TOTALITARIANISM AND SUPPORT FOR FREEDOM GORE FIRST QUESTION THE CIVIL WAR SECOND QUESTION THE REVOLUTIONARY WAR THIRD QUESTION THE UN CONFERENCE ON ENVIRONMENT AND DEVELOPMENT CONDUCTED IN RIO DE JANEIRO WHAT INDIVIDUAL HAS HAD THE MOST INFLUENCE ON YOUR LIFE GORE MY WIFE TIPPER NOTE MR CLINTON'S ANSWERS ARE FROM SEPT 1991 MR GORE'S ARE FROM AUG 1992 9301210029 930121 AMR POSTS LOSS OF 200 MILLION FOR 4TH QUARTER SOFT ECONOMY FARE WARS EXCESS CAPACITY CITED FIRM PESSIMISTIC ON '93 BY BRIDGET O'BRIAN STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP POSTED A HEAVY FOURTHQUARTER DEFICIT TO CAP OFF A LOSSRIDDEN 1992 AND THE PARENT OF AMERICAN AIRLINES SAID IT REMAINS PESSIMISTIC ABOUT 1993 AMR HAD A LOSS OF 200 MILLION OR 266 A SHARE ON REVENUE OF 358 BILLION THE FOURTH QUARTER USUALLY IS A WEAK PERIOD FOR AIRLINES BUT IT WAS MORE DIFFICULT FOR AMR THIS YEAR BECAUSE OF SEVERAL ONETIME CHARGES AND AN ACCOUNTING CHANGE WITHOUT THOSE ITEMS AMR'S LOSS WOULD HAVE TOTALED 166 MILLION OR 220 A SHARE IN THE YEARAGO PERIOD AMR HAD A LOSS OF 1249 MILLION OR 183 A SHARE ON REVENUE OF 340 BILLION THE 1991 RESULTS INCLUDED 60 MILLION IN CHARGES RELATING TO AIRCRAFT RETIREMENT AMR CHAIRMAN ROBERT L CRANDALL SAID THE FOURTHQUARTER RESULTS AS IN THE REST OF THE YEAR WERE MARKED BY A LACKLUSTER ECONOMY EXCESS CAPACITY PERPETUATED IN PART BY THE BANKRUPTCY LAWS' SUPPORT OF FAILED CARRIERS AND THE CONTINUING PROPENSITY OF CARRIERS TO OFFER THEIR PRODUCT AT NONCOMPENSATORY FARES THE COMBINATION OF THESE EVENTS WREAKED HAVOC WITH THE INDUSTRY'S RESULTS HE SAID MR CRANDALL WAS REFERRING TO THE SERIES OF FARE WARS THAT BROKE OUT AFTER FORT WORTH TEXASBASED AMERICAN THE NATION'S LARGEST CARRIER INTRODUCED ITS VALUE PRICING FARE STRUCTURE LAST YEAR THAT FOURTIERED STRUCTURE LED TO EVERGROWING DISCOUNTS THAT KEPT TICKET PRICES LOW AND DRAGGED PRACTICALLY THE ENTIRE AIRLINE INDUSTRY INTO THE RED YESTERDAY AMERICAN'S CHIEF FINANCIAL OFFICER MICHAEL J DURHAM CONCEDED IN A CONFERENCE CALL WITH REPORTERS THAT IN RETROSPECT GIVEN THE ULTIMATE DISPOSITION OF VALUE PRICING FOR THE 1992 PERIOD WE WOULD HAVE LOST LESS HAD WE NOT IMPLEMENTED VALUE PRICING ALTHOUGH MR CRANDALL SAID WE SIMPLY CANNOT HAVE ANOTHER YEAR LIKE 1992 HE SEEMS TO BE PREPARED FOR THE WORST THIS YEAR EVER THE PESSIMIST MR CRANDALL SAID HE THINKS THAT DESPITE RECENT SIGNS OF STRENGTH IN THE ECONOMY MUCH OF THE OPTIMISM IS UNWARRANTED AMR ALREADY HAS SLICED 300 MILLION OUT OF ITS ANTICIPATED 1993 SPENDING AND CONTINUES TO LOOK FOR OTHER WAYS TO CUT COSTS AND BOOST REVENUE MR DURHAM SAID AMERICAN ALREADY HAS SIGNIFICANTLY REDUCED ITS CAPITAL SPENDING AND IS ATTACKING ITS OPERATING EXPENSES WITH A MEAT CLEAVER IT IS LOOKING TO ITS OTHER DIVISIONS WHICH INCLUDE ITS COMPUTER RESERVATION SYSTEM CONSULTING AND AIRCRAFT SERVICES TO PROVIDE PROFITS WHERE THE AIRLINE ITSELF WON'T AND THE COMPANY THAT AGGRESSIVELY BOUGHT AIRLINE ASSETS IN RECENT YEARS ISN'T LIKELY TO DO SO NOW THE COMPANY'S MANAGEMENT WILL MAKE NO FURTHER INVESTMENT IN THE AIRLINE INDUSTRY UNTIL AND AT SUCH TIME WE BECOME CONVINCED THAT WE CAN EARN A SATISFACTORY RETURN ON THAT INCREMENTAL INVESTMENT MR DURHAM SAID FOR THE YEAR AMR POSTED A LOSS OF 935 MILLION OR 1249 A SHARE PRIMARILY BECAUSE OF A COLLECTION OF ONETIME CHARGES AND ACCOUNTING ADJUSTMENTS IN THE YEARAGO 12 MONTHS AMR HAD A LOSS OF 240 MILLION OR 354 A SHARE REVENUE JUMPED TO 1439 BILLION FROM 1288 BILLION THE ADOPTION OF FINANCIAL ACCOUNTING STANDARDS BOARD RULE 106 RELATING TO THE ACCRUAL OF POSTRETIREMENT MEDICAL AND LIFE INSURANCE BENEFITS FOR 1992 RESULTED IN A RETROACTIVE CUMULATIVE AFTERTAX CHARGE OF 595 MILLION WHICH WAS PARTIALLY OFFSET BY A 135 MILLION ONETIME BENEFIT RESULTING FROM FAS 109 WHICH APPLIES TO ACCOUNTING FOR INCOME TAXES AMR HAS RESTATED ITS QUARTERLY RESULTS FOR 1992 BECAUSE OF THE ADJUSTMENTS ALSO INCLUDED IN 1992 RESULTS ARE A 165 MILLION PRETAX PROVISION FOR ANTICIPATED LOSSES ASSOCIATED WITH AMR'S CONFIRM RESERVATION PROJECT AND A 14 MILLION PRETAX PROVISION FOR A CASH PAYMENT RELATED TO A PROPOSED ANTITRUST SETTLEMENT ALSO INCLUDED IS 22 MILLION FOR SEVERANCE RELATED TO MANAGEMENT LAYOFFS AN 11 MILLION PAYMENT TO METRO AIRLINES FOR A LAWSUIT SETTLEMENT AND ASSET PURCHASE AND 1 MILLION FOR THE RETIREMENT OF A BOEING CO 727 WITHOUT THE SPECIAL ITEMS AND THE CUMULATIVE EFFECT OF THE ACCOUNTING CHANGES AMR'S LOSS FOR THE YEAR WOULD HAVE BEEN 278 MILLION OR 372 A SHARE THE SEVERANCE CHARGE THE METRO LITIGATION EXPENSE AND THE JET RETIREMENT ALL WERE INCURRED IN THE FOURTH QUARTER AND MAKE UP THE CHARGES FOR THAT PERIOD THE QUARTER ALSO INCLUDED A SEPARATE 22 MILLION CHARGE FROM THE IMPLEMENTATION OF FAS 106 AMR SHARES CLOSED YESTERDAY AT 67125 DOWN 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9301210027 930121 ESYSTEMS GETS AIR FORCE PACT DALLAS ESYSTEMS INC SAID ITS SERVAIR INC UNIT GOT A 35 MILLION AIR FORCE CONTRACT TO MAINTAIN AND REPAIR AIRCRAFT AND OTHER EQUIPMENT WORLDWIDE THE ELECTRONIC SYSTEMS MAKER SAID THE 35 MILLION CONTAINS PROVISIONS FOR FOUR ONEYEAR RENEWALS RAISING ITS POTENTIAL VALUE TO AS MUCH AS 175 MILLION 9301210026 930121 WHO'S NEWS COUNTRYWIDE CREDIT INDUSTRIES INC COUNTRYWIDE CREDIT INDUSTRIES INC PASADENA CALIF ROBERT J DONATO AND EDWIN HELLER WERE NAMED DIRECTORS INCREASING THE BOARD'S SIZE TO SEVEN MR DONATO 53 YEARS OLD IS EXECUTIVE VICE PRESIDENT OF PAINEWEBBER INC MR HELLER 63 IS A PARTNER IN THE LAW FIRM OF FRIED FRANK HARRIS SHIVER & JACOBSON COUNTRYWIDE IS PRIMARILY ENGAGED IN MORTGAGE BANKING 9301210025 930121 STILL IT CAN'T GET VERY ROMANTIC IF YOU HAVE TO GO BACK TO WORK BY NEELA BANERJEE STAFF REPORTER OF THE WALL STREET JOURNAL NEARLY EVERYONE HAS HAD A DATE FROM HELL THAT INTERMINABLE EVENING WITH A FRIEND'S COUSIN THAT ENDS LEAVING ONE SERIOUSLY CONSIDERING MONASTIC LIFE BUT A CHICAGO DATING SERVICE IS TRYING TO REVOLUTIONIZE THE BLIND DATE FOUNDED BY TWO WOMEN TIRED OF THE SINGLES SCENE IT'S JUST LUNCH OFFERS LONELY CLIENTS A CHANCE TO GET ACQUAINTED OVER LUNCH IF ALL GOES WELL THE COUPLE CAN ARRANGE MORE MEANINGFUL MEALS IF NOT THEY CAN ALWAYS RUSH OFF TO THAT CRITICAL AFTERNOON MEETING GOING OUT ON A DATE CAN BE THE LONGEST NIGHT OF YOUR LIFE SAYS COFOUNDER ANDREA MCGINTY LUNCH IS SAFE AND NOPRESSURE AFTER LEAVING A LONG RELATIONSHIP IN 1991 THE 31YEAROLD MS MCGINTY TURNED TO DATING SERVICES BUT WAS SOON DISAPPOINTED BY MANY SERVICES' HARDSELL TACTICS SO SHE AND MARGARET KUNKLER BEGAN IT'S JUST LUNCH IN JANUARY 1992 WITH A LIST OF 70 FRIENDS SINCE THEN THE ROMANCE BUSINESS HAS BLOSSOMED NOW IT HAS 500 MEMBERS AGES 25 TO 55 MORE THAN HALF OF THEM WOMEN MOST ARE LOOKING FOR A SERIOUS RELATIONSHIP AND EVENTUALLY MARRIAGE THERE'S ONE REASON I WENT TO IT'S JUST LUNCH TO FIND A WIFE SAYS KIRK DOVER 39 A HUMANRESOURCES EXECUTIVE WHO IS DATING SOMEONE HE MET THROUGH THE SERVICE MY FRIENDS AND I DON'T GO TO BARS AND CONVENTIONS TO GET PICKED UP BY MEN SAYS A FEMALE 32YEAROLD ADVERTISING EXECUTIVE SO IT'S NICE TO KNOW DIFFERENT CIRCLES OF PEOPLE THROUGH ANDREA PROSPECTIVE CLIENTS ARE SCREENED ON THE BASIS OF A QUESTIONNAIRE AND DETAILED INTERVIEW THE FIRM TAKES MOST COMERS EVEN THOUGH SOME CAUSE DIFFICULTIES FOR EXAMPLE MANY 40YEAROLD MEN WILL ONLY DATE WOMEN UNDER 30 BECAUSE THEY INSIST THEY THEMSELVES LOOK SO YOUNG IN RETURN FOR A FEE 400 FOR SIX MONTHS OR 600 FOR A YEAR THE FIRM DOES ALL THE WORK MAKING RESERVATIONS CLEARING THE MATCHES WITH THE CUSTOMERS ALL THE COUPLES HAVE TO DO IS SHOW UP AND SPLIT THE TAB ACCORDING TO MS MCGINTY 75 OF ALL LUNCHES END IN SECOND DATES STILL SOME OTHER DATING SERVICES ARE SKEPTICAL ABOUT IT'S JUST LUNCH'S FORMULA IF THE PEOPLE DON'T TALK TO EACH OTHER BEFORE THE DATE IT CAN ONLY LEAD TO DISASTER SAYS CHARLIE SHAPIRO WHO HAS RUN A NEW YORK DATING SERVICE FOR 20 YEARS MS MCGINTY AND MS KUNKLER PLAN TO OPEN A NEW YORK OFFICE IN MARCH BUT GOOD BUSINESS HAS BEEN BAD SOCIALLY FOR THE FOUNDERS THEY'RE NOW TOO BUSY TO DATE 9301210024 930121 BUSINESS BRIEF NORWEST CORP BANKING FIRM POSTS 24 RISE IN FOURTHQUARTER PROFIT NORWEST CORP SAID ITS FOURTHQUARTER EARNINGS ROSE 24 TO 1384 MILLION OR 93 CENTS A SHARE FROM 1112 MILLION OR 74 CENTS A SHARE IN THE YEARAGO QUARTER FOR THE FULL YEAR THE REGIONAL BANK HOLDING CONCERN EARNED 4467 MILLION OR 297 A SHARE UP FROM 4221 MILLION OR 291 A SHARE IN 1991 THE LATEST YEAR'S RESULTS REFLECT A CHARGE OF 717 MILLION OR 51 CENTS A SHARE FOR THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING FOR POSTRETIREMENT MEDICAL BENEFITS NORWEST SAID ALL OF ITS BUSINESS UNITS CONTINUE TO DELIVER STRONG RESULTS THE MINNEAPOLISBASED COMPANY SAID ITS NORWEST FINANCIAL AND NORWEST MORTGAGE UNITS RECORDED 1992 EARNINGS INCREASES OF 29 AND 70 RESPECTIVELY 9301210023 930121 INTERNATIONAL GENCOR'S 4THQUARTER NET FELL JOHANNESBURG SOUTH AFRICA GENCOR LTD SAID THE COMBINED NET INCOME OF ITS 11 GOLD MINES FELL 11 TO 651 MILLION RAND 212 MILLION IN THE FOURTH QUARTER OF 1992 FROM 729 MILLION RAND IN THE THIRD QUARTER GENCOR GOLD DIVISION MANAGING DIRECTOR GARY MAUDE SAID HE WASN'T OPTIMISTIC ABOUT A RISE IN THE DOLLAR GOLD PRICE OVER THE NEXT SIX MONTHS BUT HE EXPECTED THE RAND TO WEAKEN TO ABOUT 350 RAND TO THE DOLLAR BY THE END OF THE YEAR FROM ITS CURRENT LEVEL OF 307 RAND PER DOLLAR 9301210022 930121 WHO'S NEWS CARDIOPULMONICS INC CARDIOPULMONICS INC SALT LAKE CITY HERBERT G TAUS A CONSULTANT TO THIS MAKER OF CARDIAC DEVICES WAS NAMED INTERIM CHIEF EXECUTIVE OFFICER MR TAUS SUCCEEDS GEORGE M SIMS WHO RESIGNED FOR PERSONAL REASONS 9301210021 930121 KELLEY OIL GIVES TEST RESULTS HOUSTON KELLEY OIL CORP SAID ITS CONFIRMATION WELL TESTED AT A COMBINED RATE OF 21 MILLION CUBIC FEET OF NATURAL GAS AND 1260 BARRELS OF CONDENSATE AN OILLIKE HYDROCARBON FROM TWO RESERVOIRS THE TWO PRODUCING RESERVOIRS OF THE WELL LOCATED IN THE OUISKI BAYOU FILED DISCOVERY FIELD IN TERREBONNE PARISH LA WERE TESTED ON 18/64INCH AND 20/64INCH OPENINGS THE WELL KELLEY CASENTE NO 1 IS TWOTHIRDS OWNED BY KELLEY PARTNERS 1991 DEVELOPMENT DRILLING PROGRAM AND THE REST BY KELLEY OIL & GAS PARTNERS KELLEY OIL CORP BY ITS OWNERSHIP IN THOSE TWO ENTITIES OWNS 5156 OF THE KELLEY CASENTE NO 1 WELL 9301210020 930121 CHEMICAL SAYS GAIN FROM FASB RULES EXPECTED IN 1ST PERIOD NEW YORK CHEMICAL BANKING CORP SAID IT WILL ADOPT TWO NEW ACCOUNTING STANDARDS IN THE FIRST QUARTER OF 1993 WHICH TOGETHER WILL RESULT IN A FIRSTQUARTER GAIN OF 35 MILLION TO 40 MILLION CHEMICAL THE NATION'S THIRDLARGEST BANKING COMPANY SAID IT WOULD INCUR A PRETAX CHARGE OF ABOUT 400 MILLION TO ADOPT STATEMENT 106 OF THE FINANCIAL ACCOUNTING STANDARDS BOARD WHICH REQUIRES COMPANIES TO ACCOUNT FOR POSTRETIREMENT BENEFITS THE CHARGE WILL BE OFFSET BY A 450 MILLION PRETAX GAIN FOR THE ADOPTION OF FASB STATEMENT 109 WHICH PERMITS ACCELERATED RECOGNITION OF UNUSED TAX BENEFITS CHEMICAL WILL CONTINUE TO ACCRUE SOME BENEFITS FROM FASB 109 THROUGH 1993 AND COULD USE THE PROCEEDS FOR ITS CAPITAL BASE IN OTHER ACCOUNTING ISSUES CHEMICAL UNDER PRESSURE FROM THE SECURITIES AND EXCHANGE COMMISSION RESTATED THE VALUE OF 8 BILLION OF ITS 23 BILLION INVESTMENT PORTFOLIO TO REFLECT MARKET PRICES THE SEC REQUIRED THE COMPANY TO RESTATE THE PORTFOLIO RETROACTIVELY TO THE THIRD QUARTER THE COMPANY SAID THE MOVE WOULDN'T AFFECT ITS EARNINGS OR CAPITAL RATIOS FOR 1992 9301210019 930121 LIPOSOME TECHNOLOGY IS SUED BY VESTAR INC OVER PROCESS PATENT SAN DIMAS CALIF VESTAR INC SAID IT FILED SUIT AGAINST COMPETITOR LIPOSOME TECHNOLOGY INC OF MENLO PARK CALIF OVER A PATENT LIPOSOME TECHNOLOGY ACQUIRED FOR A PROCESS THAT COULD BE USED IN THE PRODUCTION OF ANTIFUNGAL DRUGS THE PATENT AWARDED TO LIPOSOME TECHNOLOGY THIS WEEK COVERS A PROCESS FOR FREEZEDRYING SUBMICROSCOPIC SPHERES CALLED LIPOSOMES THAT ENCLOSE THE ANTIFUNGAL DRUG AMPHOTERICIN B THE PROCESS PREVENTS THE LIPOSOMES FROM CHANGING IN SIZE WHICH IS IMPORTANT SINCE SIZE CHANGES INCREASE THE TOXICITY OF THE THERAPY FREEZEDRYING IS IMPORTANT FOR PRESERVING THE DRUG DURING SHIPPING AND STORAGE THOUGH LIPOSOME TECHNOLOGY ISN'T USING THE PROCESS NOW TO PRODUCE ITS AMPHOCIL ANTIFUNGAL PRODUCT WHICH IS IN PHASE III CLINICAL TRIALS IN THE US LIPOSOME TECHNOLOGY SAID IT BELIEVES THE PATENT COULD POSE A BARRIER TO COMPETITORS NAMELY VESTAR MAKING OR SELLING A LIPOSOMEENTRAPPED AMPHOTERICIN B FORMULATION IN THE US IN ITS LAWSUIT FILED IN FEDERAL COURT IN DELAWARE VESTAR IS ASKING THE COURT TO DECLARE THAT LIPOSOME TECHNOLOGY'S PATENT IS INVALID AND ISN'T INFRINGED ON BY VESTAR'S OWN ANTIFUNGAL TREATMENT CALLED AMBISOME VESTAR NOTED THAT IT DOESN'T NEED ANY SUCH PROCESS FOR ITS DRUG SINCE AMBISOME DOESN'T CHANGE SIZE BEFORE FREEZEDRYING OR AFTER RECONSTITUTION BACK TO A LIQUID SOLUTION A LIPOSOME TECHNOLOGY SPOKESWOMAN SAID THE COMPANY HAD NOT YET BEEN SERVED WITH THE SUIT AND WOULDN'T COMMENT UNTIL IT WAS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY VESTAR SHARES CLOSED AT 13 DOWN 50 CENTS AND LIPOSOME TECHNOLOGY SHARES CLOSED AT 925 DOWN 25 CENTS VESTAR IS EMBROILED IN A SEPARATE LAWSUIT INVOLVING AMBISOME WITH ANOTHER COMPETITOR LIPOSOME CO OF PRINCETON NJ THAT SUIT ALLEGES THAT AMBISOME INFRINGES ON A LIPOSOME PATENT 9301210018 930121 REVIEW & OUTLOOK EDITORIAL ASIDES SYMPHONIES OF SUBJUGATION AN UNUSUAL CONCERT BY THE NEW YORK PHILHARMONIC THIS PAST WEEK IS A REMINDER IF A REMINDER IS NEEDED OF THE POWER OF ART IN THE SERVICE OF FREEDOM BRIGHT SHENG A SURVIVOR OF CHINA'S CULTURAL REVOLUTION HAS WRITTEN A HAUNTING TRIBUTE TO THOSE WHO FELL IN LACERATIONS IN MEMORIAM 19661976 IT HAS ALREADY BEEN PLAYED BY THE CLEVELAND CHICAGO BALTIMORE SEATTLE AND SAN FRANCISCO ORCHESTRAS IN NEW YORK THIS CHINESE WORK WAS PAIRED WITH DMITRI SHOSTAKOVICH'S 1962 BABI YAR SYMPHONY BASED ON FIVE POEMS BY YEVGENY YEVTUSHENKO THE MUSIC AND TEXT WERE WRITTEN DURING A RARE THAW IN SOVIET LIFE AND OVERTLY CRITICIZE ANTISEMITISM AND TOTALITARIANISM WHILE MR SHENG'S WORK IS UNREMITTING IN ITS DESPAIR THE SHOSTAKOVICHYEVTUSHENKO SYMPHONY BY CONTRAST CONVEYS A SENSE OF HOPE EVEN THOUGH IT WAS WRITTEN NEARLY 30 YEARS BEFORE FREEDOM CAME TO THE SOVIET UNION NEAR THE END THE CHORUS SINGS IN RUSSIA FEARS ARE DYING PERHAPS TODAY THERE IS A POET IN BEIJING OR SHANGHAI OR GUANGZHOU WHO IS WRITING SIMILAR WORDS IT WILL BE WORTH WAITING FOR 9301210017 930121 INTERNATIONAL ANTIIRAQ ALLIANCE NOT LIKELY TO SPLINTER WHILE CRITICISM OF THE US SURFACED AFTER STRIKES BAGHDAD IS STILL A PARIAH BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS IF HE DIDN'T HAVE ENOUGH TO WORRY ABOUT PRESIDENT CLINTON WILL ALMOST CERTAINLY HAVE TO WORK HARDER THAN HIS PREDECESSOR TO KEEP THE ANTIIRAQ COALITION INTACT IN THE PAST FEW DAYS THE USLED ALLIANCE HAS BEGUN TO SHOW ITS FIRST REAL SIGNS OF WEAR AND TEAR WITH CLEAR LEADERSHIP FROM THE NEW ADMINISTRATION COALITION MEMBERS PROBABLY WILL CONTINUE TO FOLLOW THE US LEAD IN THE PERSIAN GULF BUT THE RECENT STRAINS ARE A REMINDER THAT COALITIONS ARE RELATIONSHIPS AND YOU CAN'T TAKE THEM FOR GRANTED THEY NEED TENDING SAYS RICHARD HAASS A MIDDLE EAST ANALYST ON FORMER PRESIDENT BUSH'S NATIONAL SECURITY COUNCIL STAFF THE BEST GUARANTEE OF THE COALITION'S SURVIVAL PROBABLY WILL BE SADDAM HUSSEIN HIMSELF SO LONG AS HE CONTINUES TO ACT OUTRAGEOUSLY AND HE WILL THE COALITION WILL HOLD TOGETHER SAYS A BUSH ADMINISTRATION OFFICIAL STILL OFFICIALS AND POLITICIANS IN SUCH KEY STATES AS FRANCE BRITAIN TURKEY RUSSIA AND EGYPT HAVE EXPRESSED DOUBTS AND IN SOME CASES CRITICISM ABOUT THE BUSH ADMINISTRATION'S TITFORTAT ATTACKS ON IRAQ THE CRITIQUES WERE SURPRISING MAINLY BECAUSE THEY WERE THE FIRST HEARD SINCE THE END OF THE GULF WAR BUT ON CLOSER ANALYSIS THE COMPLAINTS WERE ALL COMPARATIVELY MILD NO SINGLE DISSENTING VIEW CHALLENGED WASHINGTON'S AND MOST IMPORTANT NO ONE IS CALLING FOR A SEPARATE PEACE OR ANY COMPROMISE WITH IRAQ EUROPEAN CRITICISMS WERE TACTICAL AND REALLY AT THE MARGINS SAYS MR HAASS FRANCE AND ITALY EXPRESSED CONCERN THAT THE PUNISHMENT IMPOSED BY THE US SPECIFICALLY SUNDAY'S CRUISE MISSILE ATTACK ON AN INDUSTRIAL COMPLEX NEAR BAGHDAD IN WHICH SEVERAL CIVILIANS WERE KILLED WAS OUT OF PROPORTION TO IRAQ'S TRANSGRESSIONS AND AGAINST A TARGET THAT DIDN'T APPEAR TO POSE A DIRECT MILITARY THREAT TO ALLIED FORCES BRITAIN'S MAIN CRITICISM WAS THAT THE RAIDS WERE REACTIVE AND HAD NO CLEARLY DEFINED MILITARY OR POLITICAL GOAL BRITAIN AND FRANCE SAID THEY WOULD CONTINUE TO SUPPORT BOMBING RAIDS AGAINST IRAQI MISSILE BATTERIES IN THE NORTHERN AND SOUTHERN NOFLY ZONES FOR RUSSIA THE MAIN PROBLEM WAS ONE OF NATIONAL PRIDE AND DOMESTIC POLITICS OPPONENTS ACCUSE PRESIDENT BORIS YELTSIN OF ABDICATING GREATPOWER STATUS TO THE US AND WASHINGTON'S FAILURE TO CONTACT MOSCOW BEFORE THE RAIDS DIDN'T HELP THE CRITICISM RAISED BY GULF WAR ARAB ALLIES SUCH AS EGYPT AND SYRIA ARE MORE WORRISOME WITH ISLAMIC FUNDAMENTALISM ON THE RISE THESE STATES NEED TO DEMONSTRATE THEIR INDEPENDENCE FROM THE WESTERN BIG POWERS BUT WITH FEW EXCEPTIONS THE ARAB WORLD BOTH LEADERS AND THE PUBLIC STILL WANTS TO SEE SADDAM HUSSEIN FIRMLY SHACKLED IF NOT DESTROYED YOU'RE NOT SEEING ANY WIDESPREAD PROTESTS OR DEMONSTRATIONS IN THE ARAB OR ISLAMIC WORLDS MR HAASS SAYS A LARGER PROBLEM THAT COULD CONFRONT THE CLINTON ADMINISTRATION IN EARLY DAYS IS A PERCEIVED DOUBLE STANDARD IN THE WEST'S FAILURE TO RESPOND FORCEFULLY TO THE KILLING OF BOSNIAN MUSLIMS AND THE RECENT MASSIVE DEPORTATION OF PALESTINIANS BY ISRAEL OF ALL THE GULF WAR ALLIES TURKEY WHOSE MILITARY BASES WERE USED IN SOME OF THE RECENT ATTACKS HAS THE MOST REASON TO WORRY THE TURKISH GOVERNMENT FACING GROWING CHALLENGES FROM ISLAMIC FUNDAMENTALISTS AT HOME HAS CRITICIZED THE WEST BITTERLY FOR FAILING TO COME TO THE AID OF BOSNIAN MUSLIMS AND WITH ITS OWN LARGE INDEPENDENCEMINDED KURDISH MINORITY ANKARA FEARS ANY ACTION THAT COULD CREATE A KURDISH REPUBLIC IN NORTHERN IRAQ TURKEY HAS ALSO LOST BILLIONS OF DOLLARS IN TRADE AND OILPIPELINE FEES SINCE THE IMPOSITION OF ECONOMIC SANCTIONS AGAINST IRAQ BUT TURKEY IS ALSO A MEMBER OF THE NORTH ATLANTIC TREATY ORGANIZATION AND HARBORS HOPES OF MEMBERSHIP IN THE EUROPEAN COMMUNITY TWO STRONG REASONS TO STICK WITH THE COALITION AND US LEADERSHIP THE SENIOR BUSH AIDE SAYS THESE NATURAL STRAINS AMONG COALITION MEMBERS COULD GROW ESPECIALLY IF THE CLINTON ADMINISTRATION FAILS TO SET A CLEAR DIPLOMATIC AND MILITARY COURSE FOR THE GULF IF MR CLINTON MOVES SWIFTLY TO LAY OUT US GOALS CLEARLY AND FORCEFULLY THE ODDS ARE THE ALLIES WILL FALL IN BEHIND THE NEW PRESIDENT HE HAS THE GOOD WILL OF BEING THE NEW BOY ON THE BLOCK SAYS PETER RODMAN AN OFFICIAL IN THE REAGAN AND BUSH ADMINISTRATIONS THE COALITION PARTNERS AREN'T GOING TO WANT TO CROSS HIM AT THE BEGINNING OF HIS TERM 9301210016 930113 MARKETING & MEDIA BILLY JOEL SUIT OVER CONFLICT MAY SPUR SOME LAWYERS TO CHANGE THEIR TUNE BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ATTORNEY PAUL MARSHALL REPRESENTS POP SINGER WHITNEY HOUSTON BUT IS ALSO ON RETAINER TO HER RECORD COMPANY ANOTHER NEW YORK LAW FIRM REPRESENTS ATLANTIC RECORDS WHILE WORKING FOR A ROCK BAND ON THE LABEL INXS AND FOR THE GROUP'S MANAGER IN THE RECORD BUSINESS SUCH CONFLICTING PROFESSIONAL LOYALTIES HAVE BECOME COMMON THEY ARE AT THE CENTER OF THE WELLPUBLICIZED LAWSUIT BY SINGER BILLY JOEL AGAINST THE MOST POWERFUL MUSIC BUSINESS ATTORNEY ALLEN GRUBMAN THOUGH ITS OUTCOME IS FAR FROM CERTAIN THAT SUIT WHICH WAS FILED IN SEPTEMBER AND SEEKS 90 MILLION IN DAMAGES IS ALREADY CHANGING THE WAY THE MUSIC INDUSTRY DOES BUSINESS SINCE THE GRUBMAN CASE REPUTABLE LAWYERS HAVE GONE TO GREAT LENGTHS TO GIVE COMPLETE AND TOTAL DISCLOSURE OF ANY POTENTIAL CONFLICTS SAYS MICHAEL MAYER OF NEW YORK'S MAYER KATZ BAKER & LEIBOWITZ PEOPLE ARE MORE AWARE THAN THEY WERE BEFORE AND ARE HANDLING THEMSELVES ACCORDINGLY IF ANYTHING GOOD COMES OUT OF THIS CASE IT IS THAT THIS WEEK MR JOEL'S LAWYERS FILED A BATCH OF NEW DOCUMENTS AS PART OF AN EFFORT TO GET THE NEW YORK STATE SUPREME COURT TO CONSOLIDATE THE CASE WITH AN EARLIER ONE AGAINST MR JOEL'S EXMANAGER THAT SUIT FILED IN 1989 AGAINST FRANK WEBER WHO IS ALSO THE BROTHER OF MR JOEL'S EXWIFE RESULTED IN SOME DAMAGES BEING AWARDED BEFORE THE MANAGER DECLARED BANKRUPTCY BUT THE SUIT HASN'T YET GONE TO TRIAL IF THE COURT RULES AGAINST MR GRUBMAN AND HIS FIRM GRUBMAN INDURSKY SCHINDLER & GOLDSTEIN THE FALLOUT COULD BE ENORMOUS CONTENDS LEONARD MARKS ONE OF MR JOEL'S LAWYERS IF WE SUCCEED ON THIS ISSUE EVERY ARTIST THAT SIGNED A DEAL WITH GRUBMAN'S FIRM WHEN HE ALSO HAD A CONTRACT TO REPRESENT THEIR LABEL COULD SUE HIM OR TRY TO GET OUT OF THEIR CONTRACTS SAYS MR MARKS THE FIRM'S ROSTER OF HIGHPOWERED ARTISTS IS UNMATCHED INCLUDING MICHAEL BOLTON BRUCE SPRINGSTEEN AND MADONNA ALONG WITH MAJOR RECORD LABELS LIKE SONY MUSIC AND EMI MUSIC THE NEW DOCUMENTS ARE DESIGNED TO PROVE THAT THE TWO CASES OVERLAP CONSIDERABLY BUT THEY ARE ALSO SURE TO PROVIDE ADDITIONAL DISH FOR THE GOSSIP COLUMNS AMONG THEM ARE PAPERS SHOWING THAT MR WEBER BORROWED 250000 FROM MR GRUBMAN IN 1985 TO BUY A HORSE NAMED VERS LA CAISSE FOUR MONTHS LATER THE HORSE WAS DEAD AND MR WEBER COLLECTED A HEFTY INSURANCE CHECK GRUBMAN AND INDURSKY DIDN'T EVEN KNOW THAT WEBER USED THE LOAN FOR A HORSE LET ALONE THAT THE HORSE DIED SAYS GERARD HARPER AN ATTORNEY WITH PAUL WEISS RIFKIND WHARTON & GARRISON IT IS SO ODIOUS TO TRY LINKING GRUBMAN TO THE KILLING OF A HORSE WHEN THERE IS NO PROOF OF ANYTHING AT ALL ALSO INCLUDED ARE NOTES TAKEN BY ONE OF MR JOEL'S LAWYERS AT AN FBI INTERVIEW OF MR GRUBMAN AND HIS PARTNER ARTHUR INDURSKY REGARDING MR WEBER MR JOEL'S LAWYERS ARE TRYING TO PROVE THAT THE GRUBMAN FIRM PAID KICKBACKS TO MR WEBER UNDER THREAT OF LOSING THE SUPERSTAR'S BUSINESS IF THEY DIDN'T ASKED BY THE FBI TO EXPLAIN CHECKS THEY WROTE TO MR WEBER'S COMPANY AMOUNTING TO 100000 IN 1985 ALONE MESSRS GRUBMAN AND INDURSKY SAID THAT MR WEBER'S COMPANY DIDN'T DO ANY FINANCIAL AND TAX PLANNING WORK AND THEY COULDN'T RECALL WRITING THE CHECKS ACCORDING TO THESE NOTES MR GRUBMAN'S LAWYER MR HARPER SAYS FINANCIAL AND LEGAL SERVICES WERE INDEED PERFORMED BY MR WEBER'S COMPANY AND BILLY JOEL HAS NO EVIDENCE OTHERWISE THE MOST WATCHED ASPECT OF THE CASE IS THE CONFLICTOFINTEREST CHARGE MR JOEL'S LAWYERS SAY THAT MR GRUBMAN REPRESENTED THE SINGER WHILE ALSO REPRESENTING MOST OF THE TOP EXECUTIVES OF HIS LABEL CBS RECORDS NOW SONY MUSIC HIS MANAGER MR WEBER AND WINTERLAND THE MERCHANDISING COMPANY GRANTED THE FRANCHISE FOR ITEMS LIKE TSHIRTS FOR MR JOEL MR JOEL WASN'T INFORMED OF THOSE CONFLICTS HIS LAWYERS SAY BERT FIELDS ANOTHER LAWYER FOR MR GRUBMAN SAYS THAT ANY AND ALL CONFLICTS WERE FULLY DISCLOSED AND DIDN'T DAMAGE THE WONDERFUL DEAL WITH CBS STRUCK BY THE GRUBMAN FIRM MOST MUSIC INDUSTRY LAWYERS AGREE THAT SUCH CONFLICTS HAVE BECOME FAR MORE PREVALENT IN RECENT YEARS EVEN WHILE THE MAJOR LABELS WERE BOUGHT BY GIANT MULTINATIONAL COMPANIES TRYING TO MAKE THE BUSINESS MORE PROFESSIONAL BUT THERE IS CONSIDERABLE DISAGREEMENT ABOUT WHETHER THEY ARE INHERENTLY UNETHICAL ABSOLUTELY IT'S GOTTEN WORSE BECAUSE THE STAKES ARE SO MUCH HIGHER THAN THEY'VE EVER BEEN SAYS OWEN SLOANE A LOS ANGELES ATTORNEY WHOSE CLIENTS INCLUDE FRANK ZAPPA AND KENNY ROGERS ONE OF THE GREAT FRAUDS THAT HAS BEEN PERPETRATED IN THE ENTERTAINMENT BUSINESS IS THAT CONFLICTOFINTEREST HAS BEEN TURNED INTO A POSITIVE THESE PERFORMERS THINK OH MY LAWYER REPRESENTS ALL SIDES SO HE'LL BE ABLE TO GET ME A BETTER DEAL VETERAN LAWYERS CONTEND THAT THOSE WHO DON'T GET COZY WITH RECORD EXECUTIVES ARE INCREASINGLY FROZEN OUT OF THE BUSINESS BY THE SMALL NUMBER OF POWERFUL RECORD COMPANIES THAT CALL THE SHOTS LOS ANGELES ATTORNEY DON ENGEL SAYS THAT ONE PERFORMER HE EXTRICATED FROM AN ONEROUS CONTRACT WAS OFFERED SEVERAL MILLION DOLLARS EXTRA BY HIS NEW LABEL IF ONLY HE WOULD FIRE THE LAWYER WHICH HE DID MR ENGEL DECLINED TO NAME THE ARTIST AND LABEL THESE RECORD COMPANIES WANT TO DEAL WITH A HOUSE LAWYER SOMEONE WHO WON'T ROCK THE BOAT SAYS MR ENGEL BUT LAWYERS ALSO SAY THAT ARTISTS THEMSELVES OFTEN ACTIVELY PURSUE THE LAWYERS WITH THE CLOSEST TIES TO INDUSTRY EXECUTIVES MR MARSHALL THE NEW YORK LAWYER WHO REPRESENTS BOTH WHITNEY HOUSTON AND BERTELSMANN MUSIC GROUP WHICH OWNS HER LABEL ARISTA SAYS IT MAKES ME FEEL UNCOMFORTABLE WHEN SUCH CONFLICTS ARISE BUT THIS IS WHAT BOTH SIDES WANTED BOTH BMG AND WHITNEY KNOW I REPRESENT THE OTHER SIDE AND I WON'T REPRESENT EITHER IF A CONFLICT COMES UP SOMETIMES CLIENTS WANT THEIR LAWYER IN THE MIDDLE HE ADDS BECAUSE THEY SEE YOU AS AN ALMOSTMEDIATOR THEY FEEL IF A LAWYER IS FRIENDLY TO BOTH SIDES IT WILL HELP PREVENT ADVERSARIAL PROCEEDINGS IN THE CASE OF ROCK BAND INXS AND ITS LABEL TIME WARNER INC'S ATLANTIC RECORDS THE LAW FIRM INSISTS UPON ONLY REPRESENTING THE BAND ON MATTERS UNRELATED TO THE LABEL SAYS MR MAYER WE TOLD THEM WE COULDN'T GET INTO THAT THERE WERE JUST TOO MANY BIG BUCKS INVOLVED SAYS MR MAYER WE WORK WITH THE BAND ON MERCHANDISING PUBLISHING AND SO ON BUT ANOTHER LAW FIRM REPRESENTS THEM WITH THE LABEL SOME LAWYERS SIMPLY REFUSE TO PUT THEMSELVES IN A POSITION OF CONFLICT DONALD PASSMAN A LOS ANGELES LAWYER WHOSE CLIENTS INCLUDE JANET JACKSON SAYS THAT WHILE HE HAS DONE LITIGATION FOR SOME LABELS HE ISN'T ON RETAINER WITH ANY OF THEM IF YOU'RE A LAWYER GETTING PAID BY A LABEL YEAR IN AND YEAR OUT HOW HARD ARE YOU GOING TO PUSH FOR SOMEBODY'S CONTRACT HE ASKS CLEARLY THE GRUBMAN FIRM HAS USED ITS CLOSE TIES TO RECORD LABELS TO ATTRACT ARTIST CLIENTS A TACTIC THAT HELPED BUILD IT INTO THE BIGGEST FIRM IN THE MUSIC BUSINESS OVER THE PAST DECADE MR GRUBMAN HAS TOLD FRIENDS THAT THE BILLY JOEL CASE IS JUST A VENDETTA BROUGHT BY LAWYERS JEALOUS OF HIS FIRM'S POWER INCLUDING JOHN EASTMAN WHOSE CLIENT LIST IS SMALL BUT POWERFUL INCLUDING ANDREW LLOYD WEBER AND PAUL MCCARTNEY THIS ISN'T A CRUSADE SAYS MR EASTMAN I HAVE A NUMBER ON BILLY JOEL'S BALANCE SHEET AND IF GRUBMAN PAYS IT THIS IS OVER MY CLIENT HAS BEEN WRONGED AND HE'S TERRIBLY ANGRY ABOUT IT BETTING WITHIN THE INDUSTRY IS THAT THE MATTER WILL BE SETTLED BEFORE IT EVER GOES TO TRIAL BUT MR GRUBMAN'S ATTORNEY DISAGREES I HAVE NO INTENTION OF SETTLING SAYS MR FIELDS I WILL SETTLE FOR NOTHING LESS THAN COMPLETE VINDICATION OF ALLEN GRUBMAN AND HIS LAW FIRM WHITNEY HOUSTON'S SOLE ATTORNEY IS SHELDON PLATT A JAN 13 ARTICLE MISTAKENLY REPORTED THAT PAUL MARSHALL IS HER LAWYER MR MARSHALL DID SOME LEGAL WORK FOR MS HOUSTON PRIOR TO 1988 WHILE IN PARTNERSHIP WITH MR PLATT BUT THAT PARTNERSHIP HAS SINCE DISSOLVED 9301210015 930121 ELI LILLY PLANS CHARGE FOR FOURTHQUARTER CITES CENTOCOR STAKE INDIANAPOLIS ELI LILLY & CO SAID ITS FOURTHQUARTER RESULTS WILL INCLUDE A SPECIAL CHARGE OF AS MUCH AS AN INDICATED 324 MILLION TO WRITE DOWN THE VALUE OF LAST YEAR'S 100 MILLION INVESTMENT IN CENTOCOR INC THE PHARMACEUTICAL COMPANY SAID THE CHARGE WILL TRIM FROM NINE CENTS TO 11 CENTS FROM PERSHARE EARNINGS ANALYSTS HAVE BEEN EXPECTING LILLY TO REPORT EARNINGS OF 119 A SHARE FOR THE LATEST QUARTER CENTOCOR SHARES LOST NEARLY TWOTHIRDS OF THEIR VALUE EARLIER THIS WEEK AFTER THE BIOTECHNOLOGY COMPANY DISCLOSED THAT IT WAS SUSPENDING HUMAN TRIALS OF ITS FLAGSHIP CENTOXIN DRUG AND HALTING OVERSEAS SALES OF THE PRODUCT IN LIGHT OF SAFETY CONCERNS REVEALED BY INTERIM TEST DATA CENTOXIN IS DESIGNED AS A TREATMENT FOR DEADLY TOXIC SHOCK CAUSED BY SEPTIC INFECTIONS AND WALL STREET'S ENTHUSIASM FOR THE DRUG'S PROMISE AT ONE TIME HAD PUSHED THE PRICE OF CENTOCOR SHARES ABOVE 60 BUT DISAPPOINTING EARLY TEST RESULTS HAD COOLED INVESTOR ENTHUSIASM CONSIDERABLY BY JULY 1991 WHEN LILLY AND CENTOCOR FORMED AN ALLIANCE UNDER WHICH THEY WOULD CONDUCT MORE TESTS AND COLLABORATE ON DEVELOPMENT OF CENTOXIN IN A CASH INFUSION THAT WAS ALSO SEEN AS A VOTE OF CONFIDENCE IN THE DRUG LILLY PAID ABOUT 25 APIECE FOR ITS TWOMILLIONSHARE OR 5 STAKE IN CENTOCOR THE AGREEMENT ALSO GAVE LILLY AN OPTION FOR SIMILAR RIGHTS FOR A CARDIOVASCULAR DRUG CENTOCOR HAS UNDER DEVELOPMENT AFTER TUMBLING 10875 TO A LOW OF 6625 ON MONDAY'S DISCLOSURE CENTOCOR SHARES HAVE ESSENTIALLY HELD FLAT LILLY SHARES WHICH SOFTENED ON MONDAY'S DISCLOSURE ROSE 25 CENTS TO 5875 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY 9301210014 930121 IMC FREEPORT UNIT TO JOINTLY OPERATE PHOSPHATE LINES BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL THE US'S TWO LARGEST PHOSPHATE FERTILIZER MAKERS ROCKED BY PLUNGING EXPORTS AND THE LOWEST FERTILIZER PRICES IN 17 YEARS SAID THEY AGREED TO JOINTLY OPERATE THEIR PHOSPHATE BUSINESSES TO SLASH COSTS IMC FERTILIZER GROUP INC NORTHBROOK ILL AND FREEPORTMCMORAN RESOURCE PARTNERS LP A NEW ORLEANSBASED LIMITED PARTNERSHIP SAID THE JOINT VENTURE WOULD MAKE UP 50 OF US PHOSPHATE ROCK CAPACITY AND 30 OF THE US MARKET FOR ONE OF THE MOST WIDELY USED FERTILIZERS DIAMMONIUM PHOSPHATE POOLING THEIR PHOSPHATE BUSINESSES WOULD ENABLE THE COMPANIES TO CUT TOTAL OPERATING AND RELATED COSTS BY MORE THAN 80 MILLION A YEAR BILLIE B TURNER IMC CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THIS WILL ALLOW US TO ENHANCE OUR PERFORMANCE DURING THIS UNCERTAIN TIME FOR THE WORLDWIDE PHOSPHATE FERTILIZER INDUSTRY HE SAID IMC'S STOCK PRICE JUMPED 2875 TO CLOSE AT 44875 A SHARE IN NEW YORK STOCK EXCHANGE TRADING AND THE FREEPORTMCMORAN PARTNERSHIP'S UNITS GAINED 625 CENTS TO CLOSE AT 20 A SHARE ON THE BIG BOARD THE JOINT VENTURE WOULD HAVE COMBINED SALES OF ABOUT 14 BILLION IMC SAID IMC IS EXPECTED TO EARN ABOUT 47 MILLION OR 215 A SHARE IN THE YEAR ENDING JUNE 30 ON SALES OF ABOUT 950 MILLION DIAMMONIUM PHOSPHATE EXPORTS HAVE ALL BUT DRIED UP OVER THE PAST SEVERAL MONTHS INDIA AND CHINA THE COMPANIES' BIGGEST FOREIGN CUSTOMERS HAVE FOR DIFFERENT POLITICAL AND ECONOMIC REASONS PRACTICALLY HALTED IMPORTS THEY ARE EXPECTED TO RETURN TO THE MARKET EVENTUALLY BUT COMPANY OFFICIALS HAVE QUIT TRYING TO SAY WHEN THAT MIGHT HAPPEN PRICES FOR DIAMMONIUM PHOSPHATE HAVE BEEN IN A FREEFALL FOR THE PAST FEW YEARS AS WORLDWIDE SUPPLY SWAMPED DEMAND AS RECENTLY AS 1991 IT WAS TRADING ON WORLD MARKETS FOR MORE THAN 150 A TON THIS WEEK IT WAS QUOTED AT 110 A TON IN CENTRAL FLORIDA OR ROUGHLY THE COMPANIES' COST OF PRODUCTION JAMES R MOFFETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF FREEPORTMCMORAN INC WHICH OWNS 513 OF THE LIMITED PARTNERSHIP SAID THE DISRUPTION IN WORLD TRADE PATTERNS IN AGRICULTURAL MINERAL MARKETS HAS RESULTED IN PHOSPHATE FERTILIZER PRICES TRADING AT THEIR LOWEST LEVEL IN MORE THAN 17 YEARS STANDARD & POOR'S CORP CITING WEAK INDUSTRY CONDITIONS SAID IT PLACED ABOUT 300 MILLION OF IMC'S DEBT ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS AFTER THE JOINTVENTURE ANNOUNCEMENT S&P SAID IT REAFFIRMED ITS RATINGS ON DEBT OF THE FREEPORT LIMITED PARTNERSHIP AND FREEPORTMCMORAN INC THE JOINT VENTURE REQUIRES THE APPROVAL OF THE BOARDS OF IMC AND FREEPORTMCMORAN THE FEDERAL TRADE COMMISSION IS ALSO LIKELY TO REVIEW THE PROPOSED JOINT VENTURE FOR ANTICOMPETITIVE IMPLICATIONS ANALYSTS SAID IMC AND THE FREEPORT LIMITED PARTNERSHIP ARE ALREADY JOINT PARTNERS IN ANOTHER AREA THEY JOINTLY OWN THE MAIN PASS 299 SULFUR DOME IN THE GULF OF MEXICO THE LARGEST SULFUR RESERVE IN NORTH AMERICA THE COMPANIES SAID THE FORMATION OF THE PROPOSED PHOSPHATE JOINT VENTURE IS EXPECTED TO BE COMPLETED BY MIDYEAR 9301210012 930121 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN EXPRESS'S CHOICE OF A SUCCESSOR TO JAMES ROBINSON III APPEARS HEADED FOR A SHOWDOWN A SEARCH PANEL MEETS TODAY AMID SIGNS ROBINSON BELIEVES HE HAS THE BACKING ON THE BOARD TO MAKE THE COMPANY'S PRESIDENT HARVEY GOLUB THE NEW CEO WHILE ROBINSON REMAINS CHAIRMAN BUT OTHERS CLOSE TO THE BOARD SAY ROBINSON MAY LACK SUCH SUPPORT MEDICALDEVICE MAKERS THAT RECEIVE FDA APPROVAL FOR CERTAIN PRODUCTS ARE LARGELY SHIELDED FROM LAWSUITS SEEKING DAMAGES FOR INJURIES TO USERS A FEDERAL APPEALS COURT RULED THE DECISION IF IT IS FOLLOWED BY OTHER US APPELLATE COURTS COULD BE OF GREAT BENEFIT TO THE MEDICALDEVICE INDUSTRY AIRBUS IS SEEKING TO TAKE MORE BUSINESS AWAY FROM RIVAL JET MAKER BOEING BY ASKING UNITED AIRLINES TO BUY SOME OF THE EUROPEAN CONSORTIUM'S FOURENGINE PLANES INSTEAD OF BOEING AIRCRAFT ALREADY ORDERED BY UNITED PEOPLE FAMILIAR WITH THE EFFORT SAID THE FDIC AGREED TENTATIVELY TO A 23 MILLION SETTLEMENT OF ITS LITIGATION AGAINST FORMER DIRECTORS AND OFFICERS OF FIRST REPUBLICBANK'S FAILED DALLAS AND HOUSTON UNITS LAWYERS SAID TENNECO'S CHAIRMAN MICHAEL WALSH 50 DISCLOSED HE HAS BRAIN CANCER BUT SAID HE FEELS WELL AND WILL STAY ON THE JOB INDEFINITELY TENNECO'S STOCK FELL 2 TO 40 ON THE NEWS WHICH CAME 18 MONTHS AFTER WALSH WAS HIRED TO TURN THE CONGLOMERATE AROUND TIME WARNER IS ASKING SOME OF ITS LARGE SHAREHOLDERS TO HELP DRAW UP A LIST OF POTENTIAL NEW DIRECTORS AS THE COMPANY PREPARES TO RESTRUCTURE ITS BOARD AFTER A SHAKEUP LAST MONTH AMR POSTED A 200 MILLION FOURTHQUARTER LOSS AND THE AMERICAN AIR PARENT REMAINS PESSIMISTIC ABOUT 1993 NAVISTAR AND THE UAW REACHED TENTATIVE ACCORD ON A NEW CONTRACT FOR 7600 WORKERS IN A STEP THAT COULD HELP THE TRUCK MAKER AVOID INSOLVENCY NYNEX AND PHILIPS ELECTRONICS PLAN TO DEVELOP AND TEST A SYSTEM TO DELIVER INFORMATION SERVICES TO HOME TELEPHONES THAT HAVE SCREENS THE VENTURE IS A CHALLENGE TO AT&T WHOSE SIMILAR EFFORT IS BEHIND SCHEDULE TELECOMMUNICATIONS INC CHAIRMAN BOB MAGNESS PLANS TO SELL HIS 19 STAKE IN THE CABLE TV COMPANY'S LIBERTY MEDIA SPINOFF FOR A PROFIT THAT COULD TOP 130 MILLION PEOPLE FAMILIAR WITH THE PLAN SAID THE SALE COULD ALLAY ANTITRUST CONCERNS IN WASHINGTON IBM CREATED A UNIT TO INVEST IN MULTIMEDIA TECHNOLOGY PROJECTS WITH OTHER COMPANIES AND ENTREPRENEURS WESTINGHOUSE REPORTED A 118 BILLION FOURTHQUARTER LOSS REFLECTING WRITEDOWNS ON DISCONTINUED OPERATIONS AND WEAK DEFENSERELATED SALES ROYAL TRUSTCO IS SEEKING AN INVESTOR TO INJECT SEVERAL HUNDRED MILLION DOLLARS OF CAPITAL INTO THE FINANCIAL SERVICES CONCERN CONTROLLED BY PETER AND EDWARD BRONFMAN OF TORONTO THE NEW INVESTOR WOULD PROBABLY BECOME THE COMPANY'S LARGEST SHAREHOLDER FINANCE CHIEFS AT MAJOR COMPANIES EXPECT THEIR OPERATING EARNINGS TO RISE AN AVERAGE OF 99 IN THE FIRST QUARTER FROM A YEAR AGO WITH SALES INCREASES AVERAGING 67 A SURVEY FOUND MOST OF THE COMPANIES SURVEYED EXPECT TO INCREASE CAPITAL SPENDING THIS PERIOD IMC FERTILIZER AND FREEPORTMCMORAN RESOURCE THE TWO BIGGEST US MAKERS OF PHOSPHATE FERTILIZER AGREED TO JOINTLY OPERATE THEIR PHOSPHATE BUSINESSES TO CUT COSTS IMC'S STOCK PRICE SURGED 2875 TO 44875 LTV FILED AN AMENDED REORGANIZATION PLAN THAT BRINGS THE STEELMAKER CLOSER TO EMERGING FROM BANKRUPTCYCOURT PROCEEDINGS BUT ANTICIPATES CONTINUING LOSSES FOR THE COMPANY STOCK AND BOND PRICES DROPPED AS DID THE DOLLAR THE DOW JONES INDUSTRIALS FELL 1404 TO 324195 IN HEAVY TRADING BUT NASDAQ STOCKS EDGED HIGHER TOKYO STOCKS SANK 17 WEDNESDAY ON SELLING BY ARBITRAGERS AND INVESTMENT TRUSTS THE NIKKEI FELL 28846 TO 1651018 LONDON SHARES ROSE AND FRANKFURT'S FOURSESSION RALLY STALLED BONDS LEHMAN BROTHERS TREASURY INDEX 474902 OFF 1247 COMMODITIES OIL 1833 A BARREL OFF 25 CENTS DOW JONES FUTURES INDEX 12214 OFF 014 SPOT INDEX 12405 UP 030 DOLLAR 12468 YEN OFF 077 16030 MARKS OFF 00080 9301210011 930121 BUSINESS BRIEF ZILOG INC CHIP MAKER SAYS ITS PROFIT JUMPED 47 IN 4TH QUARTER BUOYED BY A LARGE BACKLOG OF ORDERS FOR NEW SEMICONDUCTORS ZILOG INC SAID FOURTHQUARTER PROFIT WAS 5 MILLION OR 43 CENTS A SHARE UP 47 FROM 34 MILLION OR 35 CENTS A SHARE A YEAR EARLIER REVENUE ROSE 52 TO 451 MILLION FROM 296 MILLION A YEAR EARLIER THE CAMPBELL CALIF CHIP MAKER SAID PROFIT FOR THE YEAR WAS 16 MILLION OR 142 A SHARE UP 52 FROM 105 MILLION OR 114 A SHARE REVENUE FOR THE YEAR INCREASED 32 TO 1457 MILLION FROM 110 MILLION A YEAR EARLIER IN OVERTHECOUNTER TRADING LATE YESTERDAY ZILOG STOCK WAS QUOTED AT 3875 DOWN 75 CENTS 9301210010 930121 WHO'S NEWS ALLIED SIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ MARK E GREENBERG 46 YEARS OLD WAS NAMED STAFF VICE PRESIDENT OF PUBLIC RELATIONS AT THIS AEROSPACE TECHNOLOGY AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS CONCERN EFFECTIVE FEB 1 MR GREENBERG WHO HAD BEEN A SENIOR MANAGING DIRECTOR AT OGILVY ADAMS & RINEHART PUBLIC RELATIONS FIRM IN NEW YORK SUCCEEDS DENNIS SIGNOROVITCH 47 WHO BECAME VICE PRESIDENT OF PUBLIC AFFAIRS AT THE ALLIEDSIGNAL AEROSPACE UNIT 9301210009 930121 NEW JERSEY OUTLINES PROPOSAL TO REDUCE OZONE AIR POLLUTION TRENTON NJ STATE ENVIRONMENTAL OFFICIALS OUTLINED A PROPOSAL TO REDUCE STATE NITROGEN OXIDE EMISSIONS TO BRING NEW JERSEY UTILITIES AND INDUSTRY INTO COMPLIANCE WITH THE FEDERAL CLEAN AIR ACT OF 1990 UNDER THE PROPOSAL WHICH MUST UNDERGO PUBLIC HEARINGS UTILITIES AND INDUSTRY WILL BE REQUIRED TO REDUCE NITROGEN OXIDE EMISSIONS FROM STATIONARY SOURCES IN ORDER TO BRING DOWN THE STATE'S OZONE POLLUTION LEVELS TO FEDERALLY ACCEPTABLE LEVELS BY MAY 30 1995 THE CLEAN AIR ACT OF 1990 DESIGNATED NEW JERSEY AS A SEVERE AREA FOR OZONE AIR POLLUTION AND ORDERED THE STATE TO REDUCE THE EMISSIONS BY ABOUT 30000 TONS OR 30 A YEAR THE STATE ENVIRONMENTAL AGENCY HAS ALREADY PROPOSED REGULATIONS TO REDUCE AUTO EMISSIONS AN AGENCY SPOKESMAN SAID UTILITIES WOULD BE MOST SEVERELY AFFECTED BY THE PROPOSED REGULATIONS WITH CUSTOMERS SEEING A POSSIBLE 50CENT MONTHLY INCREASE IN THEIR BILLS BUT GLASS AND ASPHALT PRODUCERS AND MANUFACTURERS THAT REQUIRE STEAM PRODUCTION ALSO WILL LIKELY BE AFFECTED BY THE PROPOSALS THE SPOKESMAN SAID PUBLIC SERVICE GAS & ELECTRIC CO A UNIT OF PUBLIC SERVICE ENTERPRISE GROUP INC SAID IT PLANS TO REDUCE THE EMISSIONS 60 BY 1995 A MOVE THAT WILL REQUIRE ABOUT 600 MILLION IN CAPITAL INVESTMENTS NEW JERSEY'S OTHER MAJOR UTILITIES JERSEY CENTRAL POWER & LIGHT CO A UNIT OF GPU CORP AND ATLANTIC CITY ELECTRIC CO A UNIT OF ATLANTIC ENERGY INC DID NOT RETURN CALLS SEEKING COMMENT ON THE PROPOSED REGULATIONS IN A 1991 ANNUAL FILING JERSEY POWER & LIGHT ESTIMATED IT WOULD REQUIRE 94 MILLION IN CAPITAL COSTS TO COMPLY WITH NITROGEN OXIDE AND OTHER CLEAN AIR ACT REQUIREMENTS 9301210008 930121 WHO'S NEWS X DRCA MEDICAL CORP DRCA MEDICAL CORP HOUSTON LEO J BORRELL WAS NAMED A DIRECTOR OF THIS HEALTHCARE COMPANY EXPANDING THE BOARD'S SIZE TO FOUR MEMBERS DR BORRELL 50 YEARS OLD IS CURRENTLY MANAGING DIRECTOR OF HOUSTON'S HEALTHCARE CAPITAL GROUP INC 9301210007 930121 LEISURE & ARTS FILM REALLIFE STORIES OF SURVIVAL BY JULIE SALAMON THE DISTRIBUTORS OF LORENZO'S OIL HAVE BEEN WORKING VERY HARD TO MAKE IT CLEAR THAT THEIR REALLIFE STORY ABOUT A RARE CHILDHOOD DISEASE IS SOMETHING MORE NOBLE THAN A TV MOVIE OF THE WEEK JUST TWO DAYS AGO THE PICTURE'S DIRECTOR AND COPRODUCER GEORGE MILLER WAS QUOTED IN THIS NEWSPAPER SAYING IT'S CERTAINLY ABOUT A CHILDHOOD ILLNESS BUT IT'S MUCH BIGGER THAN THAT THERE'S A SENSE OF TRIUMPH AND HOPE AT THE END IN FACT LORENZO'S OIL IS QUITE IMPRESSIVE SOMETHING FAR MORE AMBITIOUS THAN THE STANDARDISSUE DISEASE MOVIE THOUGH MR MILLER AN AUSTRALIAN IS A MEDICALSCHOOL GRADUATE HE HAS SPENT MOST OF HIS ADULT LIFE AS A FILM DIRECTOR HE'S BESTKNOWN FOR HIS MAD MAX ADVENTURE PICTURES CLEARLY HE REMAINS EMOTIONALLY ENTANGLED WITH THE MYSTERIES OF MEDICAL RESEARCH AND THE PHILOSOPHICAL QUESTIONS IT RAISES HE FOUND A PERFECT CASE STUDY TO WORK OUT THESE OBSESSIONS IN LORENZO ODONE A YOUNG BOY STRICKEN WITH ADRENOLEUKODYSTROPHY ALD A RARE AND ALWAYS FATAL DISEASE WHOSE VICTIMS BECAME BLIND DEAF AND CRIPPLED BEFORE THEY DIED LORENZO'S PARENTS NONPHYSICIANS REJECTED THE PROGNOSIS AND PURSUED A CURE FOR THEIR SON EVENTUALLY THEIR AMATEUR RESEARCH SUCCEEDED WHERE THE PROFESSIONALS HAD FAILED BUT NOT BEFORE THEIR SON WAS PROFOUNDLY AFFLICTED BY THE DISEASE MR MILLER WHO ALSO COAUTHORED THE SCREENPLAY WITH NICK ENRIGHT COULDN'T HAVE DREAMED UP GREATER PSYCHOLOGICAL IMPLICATIONS THAN THE ODONES' STORY PRESENTED HIM THEY WERE EDUCATED COSMOPOLITAN PEOPLE ACCUSTOMED TO FINDING A WAY TO GET THINGS DONE HE WAS AN ECONOMIST WITH THE WORLD BANK AND SHE WAS A LINGUIST THEY WEREN'T YOUNG SO LORENZO WOULD BE THEIR ONLY CHILD AUGUSTO ODONE ALREADY HAD TWO GROWN CHILDREN FROM A PREVIOUS MARRIAGE THERE WAS AN EXTRA BURDEN ON MICHAELA LORENZO'S MOTHER ALD ONLY AFFECTS BOYS BUT IS PASSED EXCLUSIVELY THROUGH MOTHERS NOW THAT MR MILLER IS MARKETING HIS MOVIE HE FEELS COMPELLED TO TALK ABOUT THE STORY'S TRIUMPH AND HOPE BUT WHILE MAKING LORENZO'S OIL HE RESISTED ANY CONVENTIONAL IDEA OF INSPIRATION WITH THE EXCEPTION OF THE RELENTLESSLY LITURGICAL SCORE THIS IS NOT A FEELGOOD MOVIE IN ANY SENSE INDEED WATCHING IT IS A HARROWING EXPERIENCE IT'S SO AUTHENTIC IT ALMOST FEELS LIKE A DOCUMENTARY THAT DOCUMENTARY FEELING IS ENHANCED BY MR MILLER'S DECISION NOT TO REVEAL THE INNER WORKINGS OF THE ODONES' MINDS SUSAN SARANDON'S DOGGED PORTRAYAL OF MICHAELA HAS A HORRIFYING POWER BECAUSE SHE REVEALS SO LITTLE WE ARE TOLD SHE IS A RELIGIOUS WOMAN BUT WE SEE NOTHING OF THAT AND LITTLE OF HOW GUILTY SHE MIGHT FEEL AS THE DISEASE CARRIER WE SEE ONLY A TIRELESS BELIEF IN HER CHILD THAT BECOMES A KIND OF INSANITY SHE IS A HORROR TO EVERYONE BUT HIM NO MATTER HOW SICK HE BECOMES SHE NEVER WAVERS IN HER TENDERNESS TOWARD HIM AND THIS LEAVES HER NOTHING FOR ANYONE ELSE NICK NOLTE ISN'T A PARTICULARLY CONVINCING ITALIAN BUT EVENTUALLY HE BECOMES A CONVINCING AUGUSTO AS HIS WIFE'S FIERCENESS BEGINS TO INFECT HIM AT THE SAME TIME MR NOLTE BRINGS THE FILM ITS ONLY LIGHTNESS ESPECIALLY WHEN HE FINDS THE MISSING LINK IN THE PROFESSIONAL RESEARCH FOR THAT MOMENT ANYWAY HIS LAYMAN'S DELIGHT IN CRACKING THE SCIENTIST'S SECRET CODE DISTRACTS HIM FROM HIS SORROW OTHERWISE THERE'S A GRIM OBSSESSION IN CHARGE OF THE FILM THAT GOES BEYOND THE ARTISTIC NEED TO EXPRESS OBSESSIVENESS THIS MANIA FEELS PERSONAL AS THOUGH MR MILLER HAS SOME STAKE IN REVEALING THE HUMAN LIMITATIONS OF THE MEDICAL PROFESSIONALS LORENZO'S OIL IS FASCINATING AND GRUELING I WOULD HAVE EXPECTED ALIVE ANOTHER HARROWING TRUELIFE STORY TO BE MORE GRUELING THAN IT IS THIS IS THE FILM ADAPTATION OF PIERS PAUL READ'S 1974 BOOK ABOUT ARGENTINE RUGBY PLAYERS WHO SURVIVED A PLANE CRASH IN THE ANDES AND 10 WEEKS OF SUBZERO WEATHER BY EATING THEIR TEAMMATES WHO DIED IN THE CRASH WHILE WATCHING DIRECTOR FRANK MARSHALL AND WRITER JOHN PATRICK SHANLEY'S BREEZILY UNIMAGINATIVE INTERPRETATION OF THIS MATERIAL I FOUND MYSELF WONDERING WHETHER ANYONE COULD POSSIBLY DEAL WITH CANNIBALISM IN A WAY THAT DIDN'T EITHER MAKE THE AUDIENCE GAG OR GIGGLE THE TWO RESPONSES IN THE THEATER WHERE I SAW THE PICTURE THEN I REMEMBERED THAT SOMEONE ALREADY HAD SO PERIODICALLY AFTER THAT I FOUND MYSELF DISTRACTED FROM THE PREDICTABLE EVENTS UNFOLDING ONSCREEN BY THE HAUNTING SOUNDTRACK PLAYING IN MY HEAD FROM SWEENEY TODD STEPHEN SONDHEIM'S GREAT MUSICAL ABOUT A HUMAN FLESH EATER SO I WOULD RECOMMEND THIS TO ANYONE WHO DECIDES HE OR SHE MUST SEE ALIVE WHICH DOES CONTAIN SOME BEAUTIFUL FOOTAGE OF SNOWTOPPED MOUNTAINS AND A FUNDAMENTALLY RICH STORY TAKE A WALKMAN AND A TAPE OF SWEENEY TODD TO THE THEATER WITH YOU THAT WAY YOU CAN ENJOY THE SCENERY LOOK AT THE APPEALING YOUNG ACTORS AND EVEN CONSIDER THE HORROR OF THEIR CHARACTERS' SITUATION WITHOUT BEING DISTRACTED BY INANE DIALOGUE THE OAK IS AN ABSURDIST COMEDY ABOUT LIFE IN NICOLAE CEAUCESCU'S ROMANIA TOLD AS A SURREAL ROAD PICTURE THE DIRECTOR LUCIAN PINTILIE HAS A STRIKING VISUAL STYLE THOUGH THE MOVIE'S DELIBERATE OBLIQUENESS MAKES IT MORE INTERESTING AS A SOCIOLOGICAL ARTIFACT THAN AS A FILM NOW THAT WE'VE SEEN SO MUCH DIRECT EVIDENCE OF THE BRUTALITY OF CEAUCESCU'S SOCIALIST REGIME THIS ABSTRACT VISION SEEMS MUCH LESS COMPELLING THAN IT MIGHT HAVE A FEW YEARS AGO VIDEO TIP MAYBE IT'S A CHARACTER FLAW BUT I WOULD CHOOSE DARK VICTORY OVER LORENZO'S OIL ANYTIME IF I WERE IN THE MOOD FOR A FATALDISEASE MOVIE LORENZO'S OIL IS A FAR MORE INTELLIGENT PIECE OF FILMMAKING BUT DARK VICTORY IS A MUCH MORE SATISFYING MOVIE EVERY SHAMELESS FRAME OF IT WITH BETTE DAVIS DOING WHAT SHE DID SO WELL AS WELL AS SHE EVER DID IT 9301210006 930121 MARKETSCAN THERE IS NO WAY TO SUGARCOAT THIS NEWS PRICES OF BREAKFAST CEREALS ARE GOING UP BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL EXPECT A NEW CRUNCH IN BREAKFAST CEREALS SOON A PRICE CRUNCH OVER THE YEARS THE FLAKES NUGGETS AND PUFFS THAT PEOPLE EAT EVERY MORNING HAVE BECOME AMONG THE MOST HEAVILY PROMOTED FOODS AROUND DISCOUNTS ARE AS COMMON AS INTHEBOX PRIZES ONCE WERE INDEED THE INDUSTRY ESTIMATES THAT PERHAPS HALF THE BILLIONS OF BOXES SOLD ANNUALLY GO FOR LESS THAN THEIR LIST PRICES SOMETIMES MUCH LESS BUT THERE IS GROWING EVIDENCE THAT THE DAYS OF EVERLARGER PROMOTIONAL DEALS ON BREAKFAST CEREALS ARE WANING FOR CONSUMERS I THINK WE WILL SEE HIGHER NET PRICES SAYS SG WARBURG & CO FOOD ANALYST JOANNA SCHARF ROSSEIN SUPERMARKET SCANNER DATA GATHERED BY INFORMATION RESOURCES INC FROM A PANEL OF 60000 HOUSEHOLDS FIND THAT SUCH INCREASES ARE ALREADY UNDER WAY THE DATA BASED ON THE 52 WEEKS ENDED DEC 27 SHOW THAT THE ESTIMATED AVERAGE BASE PRICE APART FROM ANY PROMOTIONAL DISCOUNTS FOR NATIONALLY ADVERTISED CEREAL BRANDS ROSE TO 3 FROM 285 A 53 GAIN PRICES OF PRIVATELABEL CEREALS WHICH MANY SUPERMARKET CHAINS OFFER AS CHEAPER ALTERNATIVES TO THE NATIONAL BRANDS INCREASED 46 EVEN WITH MANUFACTURERS' COUPONS SHOPPERS IN 1992 PAID ABOUT 8 MORE FOR AN AVERAGE BOX OF CEREAL THAN THEY HAD THE YEAR BEFORE THE AVERAGE PRICE AFTER COUPONS WENT UP TO 223 A BOX COMPARED WITH 206 A YEAR EARLIER THE RISK FOR CEREAL COMPANIES IS THAT WITHOUT DISCOUNTS SHOPPERS COULD SUFFER STICKER SHOCK TODAY BOXES OF BREAKFAST CEREAL CAN COST 5 JUST A FEW YEARS AGO 4 WAS REGARDED AS THE PRODUCT'S PRICE CEILING INDEED OF THE 183 VARIETIES OF CEREAL IN ONE TYPICAL MIDWEST STORE TAIT'S SUPERMARKET IN DES MOINES IOWA SEVERAL WERE NUDGING 5 ALONGSIDE THE 505 18OUNCE BOX OF TOTAL WHEAT FLAKES WERE A 17OUNCE BOX OF GENERAL MILLS' TRIX FOR 494 AND A 203OUNCE PACKAGE OF KELLOGG'S CRACKLIN' OAT BRAN FOR 487 INFORMATION RESOURCES' TABULATION OF THE 10 BESTSELLING CEREALS IN THE US FOUND THE CHEAPEST TO BE KELLOGG'S CORN FLAKES WITH A BASE PRICE OF 196 BUT THAT IS UP NEARLY 6 FROM A YEAR AGO WHILE THE FLAKES COULD BE PURCHASED FOR AS LITTLE AS 67 CENTS IN 1991 WITH RETAILERS' COUPONS IN 1992 THAT FIGURE HAD GONE UP TO 105 NEARLY A 57 RISE THIS WEEK KELLOGG CO DISCLOSED THAT IT SLASHED MARKETING EXPENDITURES WHICH INCLUDE COUPONING AND PRICE CUTS TO RETAILERS MORE THAN 40 MILLION IN THE FOURTH QUARTER OF LAST YEAR THAT DECLINE FOLLOWED MORE THAN TWO YEARS OF HEFTY GAINS IN MARKETING EXPENDITURES A PERIOD DURING WHICH RICE KRISPIES AND CORN FLAKES COULD BE PURCHASED FOR LESS THAN 1 A BOX A FEW DAYS AGO KELLOGG ANNOUNCED IT WAS RAISING CEREAL'S WHOLESALE PRICES AN AVERAGE OF 32 A MOVE QUICKLY FOLLOWED BY GENERAL MILLS INC KELLOGG AND GENERAL MILLS HAVE GOOD REASON TO WANT A SLOWDOWN IN DOMESTIC PROMOTIONAL SPENDING BECAUSE COMPETITION BETWEEN THEM IS HEATING UP OVERSEAS WHILE KELLOGG DOMINATES THE GLOBAL CEREAL MARKET WITH A 45 SHARE GENERAL MILLS' JOINT VENTURE WITH NESTLE SA CEREAL PARTNERS WORLDWIDE IS TAKING BIG STRIDES IT RECENTLY ADDED GERMANY TO ITS EUROPEAN MARKETS AND BEGAN SHIPPING CEREALS FROM A NEW GENERAL MILLS PLANT IN NEW MEXICO ACROSS THE BORDER INTO MEXICO NOTWITHSTANDING THE PROMOTIONAL SLOWDOWN SOME ANALYSTS WONDER WHETHER HIGHER PRICES WILL STICK I WORRY ABOUT POST RELOADING THE CANNON SAYS PRUDENTIAL SECURITIES' JOHN M MCMILLIN REFERRING TO KRAFT GENERAL FOODS' POST CEREALS BUSINESS KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS RECENTLY AGREED TO ACQUIRE THE NABISCO SHREDDED WHEAT CEREAL BUSINESS OF RJR NABISCO HOLDINGS CORP MR MCMILLIN NOTES A SLEW OF POST CEREALS COUPONS IN HIS SUNDAY NEWSPAPER WHICH SOMETIMES CONTAIN 6 OR MORE IN DISCOUNTS BUT EVEN SHOPPERS WHO DON'T BOTHER CLIPPING COUPONS CONTINUE TO GET PRICE BREAKS ON CEREAL SOME SUPERMARKET CEREALSECTION SHELVES ARE MOUNTED WITH AUTOMATIC COUPON DISPENSERS WITH FLASHING RED LIGHTS TO ATTRACT ATTENTION CHICAGOBASED JEWEL SUPERMARKETS A UNIT OF AMERICAN STORES CO LAST WEEK DISPENSED COUPONS KNOCKING 50 CENTS OFF QUAKER OATS CO'S LIFE CEREAL THE STORES ALSO WERE PROMOTING POST RAISIN BRAN WITH AN INSTORE COUPON WORTH 110 STILL AS CEREAL PRICES CLIMB THE OVERALL VALUE OF THEIR DISCOUNT COUPONS IS DECLINING NCH PROMOTIONAL SERVICES A CHICAGO UNIT OF DUN & BRADSTREET CORP THAT PROCESSES COUPONS SAYS THE AVERAGE FACE VALUE OF CEREAL COUPONS DISTRIBUTED BY MANUFACTURERS LAST YEAR WAS 785 CENTS COMPARED WITH 85 CENTS IN 1991 COUPONS MOVE CEREALS BY THE CASE BUT THE COMPANIES ACKNOWLEDGE A DANGER IN CONSTANTLY OFFERING BIG COUPON DISCOUNTS THEY RISK CREATING IN CONSUMERS A SENSE THAT THE PRODUCTS AREN'T WORTH THEIR FULL LIST PRICE EVERYBODY'S GOT TO BE CONCERNED ABOUT THAT CONCEDES A SPOKESMAN FOR GENERAL MILLS BUT THE BIG CEREAL MAKERS MAY THINK TWICE ABOUT REDUCING THEIR PROMOTIONAL SPENDING FURTHER GIVEN THE EVERPRESENT THREAT FROM PRIVATELABEL RIVALS DURING THE RECENT 52WEEK PERIOD SALES OF PRIVATELABEL CEREALS INCREASED 9 TO 3458 MILLION OR JUST OVER 5 OF THE CATEGORY'S DOLLAR SALES CEREAL MAKERS SAY THE GROWTH OF PRIVATE LABELS WAS ACTUALLY LESS THAN IN RECENT YEARS PERHAPS A RESULT OF INTENSE PROMOTIONAL ACTIVITY BY THE NATIONAL BRANDS HOUSE BRANDS OFFER A CLEAR PRICE ALTERNATIVE TO NATIONAL ONES AT TAIT'S IN DES MOINES THIS WEEK A 20OUNCE BOX OF FLAVORITE RAISIN BRAN A PRIVATELABEL BRAND IS PRICED AT 210 THE SAME SIZE BOX OF KELLOGG'S RAISIN BRAN NEXT TO IT COSTS 360 OR 71 MORE POST'S RAISIN BRAN ALSO WAS 360 SIMILARLY THE HOUSE VERSION OF GENERAL MILLS' HONEY NUT CHEERIOS COST 138 LESS THAN THE NAME BRAND A 38 SAVING AS KELLOGG AND GENERAL MILLS FOUGHT OFF PRIVATE LABELS AND EACH OTHER BOTH GIANTS DIVERTED LARGE AMOUNTS OF CASH FROM ADVERTISING INTO COUPONING AND TRADE PROMOTIONS FIGURES COMPILED BY LEADING NATIONAL ADVERTISERS INC AND WHEAT FIRST BUTCHER & SINGER RESEARCH IN RICHMOND VA SHOW THAT IN THE FIRST NINE MONTHS OF 1992 KELLOGG CUT ADVERTISING ON SUCH CORE BRANDS AS FROSTED FLAKES RAISIN BRAN AND FROOT LOOPS COMPARED WITH YEAREARLIER EXPENDITURES GENERAL MILLS MEANWHILE REDUCED AD SPENDING ON 16 OF ITS CEREALS INCLUDING SUCH BIG SELLERS AS TOTAL LUCKY CHARMS AND TRIX BUT AT THE SAME TIME TO PREVENT EROSION OF BESTSELLER CHEERIOS A BRAND FREQUENTLY COPIED BY PRIVATELABEL MANUFACTURERS THE COMPANY INCREASED ADVERTISING EXPENDITURES NEARLY 10 TO 23 MILLION AND JUST TO MAKE SURE THAT CHEERIOS STAYED ATOP THE CHARTS GENERAL MILLS LATELY HAS BEEN SELLING TWO BOXES FOR THE PRICE OF ONE AS THE NATION'S THIRDLARGEST CEREAL MAKER THE POST UNIT OF KRAFT GENERAL FOODS HAS TRADITIONALLY SPENT MUCH LESS ON PROMOTION THAN THE MARKET LEADERS POST'S BESTSELLER IS GRAPENUTS AND LATELY THE COMPANY HAS BEEN TRYING TO IMPROVE THE BRAND'S STANDING BY PROMOTING GRAPENUTS AS A HOT CEREAL AS WELL AS A COLD ONE ADS SUGGEST THAT CONSUMERS POUR MILK ON THE NUGGETS THEN POP THE BOWL INTO A MICROWAVE MARKETERS OF SUCH BREAKFAST FAVORITES AS CHEERIOS KELLOGG'S RAISIN BRAN AND FROSTED MINIWHEATS KEEP BOOSTING THEIR PRICES MEANWHILE COUPONS AND TWOFORONE OFFERS ARE LIKELY TO BE SCARCER MARKET SHARE FIGURES ARE DERIVED FROM SUPERMARKET SALES DURING THE 52 WEEKS ENDED DEC 27 AVERAGE RETAIL PRICE PAID IS BASED ON THE SUPERMARKET PURCHASES OF A NATIONALLY REPRESENTATIVE PANEL OF 60000 HOUSEHOLDS AND REFLECTS PROMOTIONAL DISCOUNTS 9301210005 930121 NOTABLE & QUOTABLE BILL CLINTON WRITING IN THE NOVEMBER 1966 ISSUE OF THE GEORGETOWN COURIER A STUDENT PUBLICATION OF GEORGETOWN UNIVERSITY IN WASHINGTON FRESHMEN ELECTIONS ARE COMING SOON FOOTBALL SEASON IS ALMOST HERE AND INTEREST IS RUNNING HIGH IN ALL THOSE DIVERSE ACTIVITIES WHICH FALL UNDER THE DIRECTION OF WHAT WE CALL STUDENT GOVERNMENT BEFORE THIS ENTHUSIASM EBBS AND IF HISTORY PROVIDES ANY INDICATION IT WILL I THINK FOR THE BENEFIT OF FRESHMEN AND ALL THOSE WHO CARE ABOUT THE DIRECTION OF STUDENT ACTIVITY WE OUGHT TO EXAMINE THE ACCOMPLISHMENTS THE FAILURES AND THE FUTURE OF THE CUMBERSOME CURIOUS GROUP OF ORGANIZATIONS BY WHICH WE ATTEMPT TO GOVERN OURSELVES MY GREATEST FEAR IS THAT STUDENT GOVERNMENT IS GOING TO BE REJECTED UNLESS IT TAKES THE LEAD IN TRYING TO STOP THE KIND OF FAILURE EXEMPLIFIED BY THE FOLLOWING INSTANCES ALL OF WHICH MIGHT NOT HAVE BEEN FAILURES EXCEPT FOR A LACK OF LEADERSHIP INITIATIVE OR PURPOSEFUL POWER AND A GRIM DETERMINATION IF ELECTED REPRESENTATIVE GOVERNMENT IS TO HAVE ANY MEANING AT ALL IT MUST MAKE A DEEP COMMITMENT TO MEET HEADON ISSUES LIKE THESE ABOVE WE CANNOT ADOPT A POLICY OF ISOLATION OR INACTION OR OUR POLITICS WILL BE WITHOUT SUBSTANCE WE AS A STUDENT BODY MUST URGE OUR REPRESENTATIVES TO ENTER AND SUPPORT THEM IN THOSE FIELDS WHERE THEY ARE MOST NEEDED TO PLANT THE SEEDS OF IMPROVEMENT TO REAP THE HARVEST OF BENEFICIAL CHANGE THE TIMES DEMAND IT 9301210004 930121 MARKETING & MEDIA LOS ANGELES TIMES BUYOUT OFFER IS SAID TO GET BIG RESPONSE LOS ANGELES A PLAN BY THE LOS ANGELES TIMES TO SLIM DOWN ITS STAFF MAY BE PROVING MORE POPULAR THAN MANAGEMENT WANTS THE NEWSPAPER FLAGSHIP OF TIMES MIRROR CO AND AMONG THE US'S LARGEST HAS BEEN HIT BY INDUSTRYWIDE PRESSURES AND A SICK REGIONAL ECONOMY IT IS OFFERING A VOLUNTARY SEVERANCE PACKAGE TO 5200 FULLTIME EMPLOYEES IN ITS TOTAL WORK FORCE OF 7500 TO TRY TO TRIM 500 POSITIONS THIS YEAR THROUGH THE BUYOUT AND ATTRITION SOME REPORTERS AND EDITORS WHO REQUESTED ANONYMITY SAID THAT AT LEAST 700 EMPLOYEES AND POSSIBLY MANY MORE HAD VOLUNTEERED FOR THE PLAN BY FRIDAY'S DEADLINE INCLUDING SOME HIGHPROFILE STAFFERS WHOM THE COMPANY WANTS TO RETAIN VOLUNTEERS HAVE A WEEK TO RECONSIDER AND THE COMPANY HAS SET LIMITS ON HOW MANY POSITIONS IN VARIOUS DEPARTMENTS WILL BE ELIMINATED A LOS ANGELES TIMES SPOKESWOMAN DECLINED TO SAY HOW MANY EMPLOYEES APPLIED BUT SHE SAID THE COMPANY WILL MEET ITS GOALS EASILY SHE SAID MORE INFORMATION WILL BE AVAILABLE NEXT WEEK THE PLAN WHICH INCLUDES AS MUCH AS TWO YEARS' SALARY AND FULL RETIREE MEDICAL BENEFITS FOR THOSE AT LEAST 50 YEARS OLD WAS CONSIDERED GENEROUS AND PROMPTED MANY EMPLOYEES TO APPLY AT THE LAST MINUTE ANALYSTS SAID THE BUYOUT AND EMPLOYEES' RESPONSE WEREN'T SOLELY THE RESULT OF INDUSTRY WOES I THINK IT'S A COMMENT ON PEOPLE'S VIEW OF THE FUTURE OF CALIFORNIA SAID JOHN S REIDY MEDIA ANALYST WITH SMITH BARNEY HARRIS UPHAM & CO HE ESTIMATED THAT THE NEWSPAPER'S CURRENT ANNUAL OPERATING EARNINGS NOT INCLUDING CHARGES RELATED TO THE BUYOUT ARE BETWEEN 70 MILLION AND 80 MILLION COMPARED WITH ABOUT 200 MILLION IN 1986 THE TIMES HAS A DAILY CIRCULATION OF ABOUT 11 MILLION 9301210003 930121 HEARD ON THE STREET CAN STEFFEN'S FLASH BRIGHTEN KODAK STOCK BY LAURIE P COHEN AND JOAN E RIGDON STAFF REPORTERS OF THE WALL STREET JOURNAL SO FAR CHRISTOPHER STEFFEN EASTMAN KODAK'S NEWLY APPOINTED CHIEF FINANCIAL OFFICER IS THE 22 BILLION MAN THAT'S HOW MUCH KODAK'S STOCK MARKET VALUE HAS RISEN SINCE THE FORMER HONEYWELL TURNAROUND WHIZ WAS NAMED TO THE POST LAST WEEK AND TO HEAR MANY WALL STREET ANALYSTS AND TRADERS TALK ABOUT IT THE SKY'S THE LIMIT FOR THIS STOCK WHICH UNTIL RECENTLY GENERATED ABOUT AS MUCH ENTHUSIASM AS WATCHING PHOTOS OF YOUR AUNT'S BIRTHDAY PARTY DEVELOP THE ANNOUNCEMENT OF CHRIS STEFFEN SHOWS A BROADBASED STRATEGIC CHANGE IN DIRECTION CROWS PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON A FORMERLY BEARISH ANALYST WHO LAST WEEK JOINED THE CROWD IN RAISING HIS RATING ON THE STOCK TO BUY FROM HOLD AND SAVVY MUTUAL FUND STOCK PICKER MICHAEL PRICE IS HIGH ON KODAK TOO IN KODAK HE SAYS MR STEFFEN HAS THE ASSETS TO BRING UP THE VALUE OF THE STOCK MR PRICE ADDS TO GET THIS STOCK TO 60 IS A CINCH KODAK IS NOW AT 48 5/8 OFF 3/4 YESTERDAY YET EVEN SOME OF MR STEFFEN'S KEENEST LONGTIME FANS AND HE HAS MANY AREN'T SO SURE THAT HE CAN WORK HIS USUAL MAGIC ON KODAK HE WAS TAPPED FOR THE JOB LAST WEEK BY CHAIRMAN KAY WHITMORE AS KODAK LAUNCHED SEVERAL OTHER COSTCUTTING STEPS CHRIS DID A GREAT JOB AT HONEYWELL AND A GREAT JOB AT CHRYSLER SAYS RICHARD RAINWATER THE FORT WORTH TEXAS INVESTOR WHO GOT TO KNOW MR STEFFEN IN THE 1980S AFTER BUYING A SIZABLE STAKE IN HONEYWELL HE'LL DO THE JOB AT KODAK BUT JUST HIS GOING THERE DOESN'T MEAN YOU WANT TO BE AN INVESTOR IN THE COMPANY THAT'S BECAUSE MR RAINWATER SAYS KODAK'S PROBLEMS ARE BIGGER PROBLEMS KODAK IS LADEN WITH 10 BILLION OF DEBT LARGELY BECAUSE OF ITS ACQUISITION OF THE STERLING WINTHROP DRUG BUSINESS AND WITH THE ADVENT OF COMPETING PRODUCTS SUCH AS VIDEO CAMERAS TECHNOLOGY HAS PASSED THEM BY KODAK'S FILM SALES HAVE BEEN HURT BY THE INCREASING POPULARITY OF NEWER PRODUCTS IN THE FIRST NINE MONTHS OF 1992 THE INDUSTRY'S FILM SALES DECLINED 54 IN THE US ACCORDING TO THE PHOTO MARKETING ASSOCIATION A TRADE GROUP WARREN BUFFETT WHO HAD BEEN RUMORED TO BE A BUYER OF KODAK AS THE STOCK JUMPED 7 POINTS IN THE PAST WEEK ALSO ISN'T INTERESTED KODAK IS A BIG BUREAUCRATIC COMPANY THAT LIKE IBM HAS A HELL OF A HISTORY SAYS AN INDIVIDUAL WHO KNOWS MR BUFFETT WELL MR BUFFETT WON'T COMMENT ON KODAK AND STEINHARDT PARTNERS SOLD OFF THE LAST OF ITS SMALL KODAK HOLDINGS EARLIER THIS WEEK KODAK A STEINHARDT PARTNERS INSIDER NOTES HAS HAD SO MANY FALSE STARTS INDEED KODAK HAS A HISTORY OF ANNOUNCING RESTRUCTURINGS THAT GO NOWHERE SINCE 1982 THE COMPANY HAS UNVEILED FOUR DIFFERENT RESTRUCTURINGS AND BILLIONS OF DOLLARS IN WRITEOFFS ALL HAVE FAILED TO STREAMLINE THE COMPANY AND ACHIEVE THE DESIRED ACCELERATION IN PROFITS ACCORDING TO EDWARD KERSCHNER A MARKET ANALYST AT PAINEWEBBER KODAK'S STOCK UNDERPERFORMED THE STANDARD & POOR'S 500STOCK INDEX BY MORE THAN 200 PERCENTAGE POINTS SINCE 1982 IT WAS SOMETHING OF AN UNDERSTATEMENT TUESDAY WHEN MR WHITMORE TOLD ANALYSTS THAT 1992 EARNINGS WERE DISAPPOINTING SO WHY ALL THE EXCITEMENT AMONG THOSE WHO FOLLOW THE COMPANY FOR BIG WALL STREET SECURITIES FIRMS FOR THE FIRST TIME SAYS DEAN WITTER REYNOLDS ANALYST EUGENE GLAZER KODAK IS MAKING ITS PROMISES BY ACTIONS NOT BY WORDS AS EVIDENCE ANALYSTS POINT OUT THAT THE COMPANY WHICH HAD A REPUTATION FOR BEING PATERNALISTIC AND OFFERING GENEROUS EARLYRETIREMENT INCENTIVES HAS BECOME AS CALLOUS AS THE REST OF THEM THIS WEEK IT LAID OFF 2000 OUSTED WORKERS WILL GET TWO WEEKS' SEVERANCE FOR EACH YEAR OF SERVICE ALSO CONTRIBUTING TO THE STOCK'S RECENT SURGE IS THAT KODAK IS PRODDING ITS TOP MANAGERS TO BUY COMPANY STOCK IN THE PAST KODAK'S DIRECTORS AND MANAGEMENT HAVE OWNED LESS THAN 1 OF KODAK'S SHARES ANALYSTS AND FUND MANAGERS APPLAUDED HEARTILY WHEN KODAK THIS WEEK CONCEDED THAT ITS CORE PHOTOGRAPHY BUSINESS IS MATURE AND WON'T GROW AT THE 7 ANNUAL RATE THE COMPANY HAD BEEN EXPECTING 2 TO 4 IS MORE LIKE IT KODAK SAYS IT WON'T BE SPENDING AS MUCH TO PROMOTE THAT BUSINESS NOW INVESTORS SHOULD BELIEVE KODAK'S NEW PROMISES OF COST SAVINGS BECAUSE WE ARE GOING TO LOOK AT THE WORLD AS IT IS NOT AS WE WOULD LIKE IT TO BE A COMPANY SPOKESMAN SAID REFERRING TO KODAK'S NEW STRATEGY OF ADAPTING TO SLOWER GROWTH DON'T EXPECT KODAK TO SELL STERLING IN A HURRY A MOVE THAT HAS BEEN RUMORED ON WALL STREET THE COMPANY HAS BEEN TELLING INVESTORS IT ISN'T LOOKING TO SELL THE UNIT THE STREET SUSPECTS THAT'S BECAUSE IT COULDN'T MAKE THE SALE AT A PROFIT KODAK SAYS THAT IT GOT INTO PHARMACEUTICALS BECAUSE THE BUSINESS HAS ATTRACTIVE RETURN RATES AND THAT IT'S PLEASED WITH NEW DRUGS IN THE PIPELINE TONY KREISEL COMANAGER OF PUTNAM FUND FOR GROWTH & INCOME SAYS THAT THERE ARE THREE LETTERS THAT ACCOUNT FOR WHY THIS HUGE BEAR OF A COMPANY IS FINALLY EMERGING FROM LONGTERM HIBERNATION I B AND M KODAK HE SAYS IS ROUSING ITSELF TO AVOID THE FATE OF INTERNATIONAL BUSINESS MACHINES WHOSE STOCK HAS SLID TO 46 7/8 FROM ABOVE 100 IN THE PAST YEAR KODAK SAYS IT HAS KEPT UP WITH CHANGING TECHNOLOGY BY INTRODUCING SEVERAL ELECTRONIC PRODUCTS INCLUDING A FILMLESS CAMERA FOR JOURNALISTS AND PHOTO CD WHICH ALLOWS CONSUMERS TO STORE THEIR PHOTOGRAPHS ON COMPACT DISKS THAT CAN BE PLAYED ON TELEVISIONS OR COMPUTERS IN ADDITION KODAK SAYS IT'S TRYING TO TAKE MORE LAYERS OUT OF MANAGEMENT AND ITS NEW COMPENSATION PLAN WHICH REWARDS MANAGERS FOR GROUP INSTEAD OF INDIVIDUAL PERFORMANCE SHOULD GET ALL MANAGERS PULLING IN THE SAME DIRECTION THE NEWLY OPTIMISTIC ANALYST MR KREISEL HAS COINED A TERM FOR WHAT IS ABOUT TO HAPPEN TO KODAK WHEN ITS NEW CHIEF FINANCIAL OFFICER COMES TO WORK KODAK WILL GET STEFFENIZED HE SAYS AND THAT STEFFENIZING COULD BE SIGNIFICANT ON TOP OF WHAT KODAK HAS ALREADY ANNOUNCED AS ONE LESS SANGUINE TRADER POINTS OUT EVEN IF KODAK CAN'T BE TURNED INTO A HIGHFLIER AGAIN HUGE CHANGES ARE PROBABLY IN STORE FOR IT ROCHESTER IS BLEAK IN THE WINTER HE SAYS ADDING THAT MR STEFFEN WHO IS NOW GOLFING NEAR JUPITER FLA WOULDN'T GO THERE UNLESS THERE'S A BIG PAYOFF US SURGICAL CHEERED AS ITS STOCK SOARED YESTERDAY BUT IS IT CELEBRATING TOO SOON SHARES OF THE SURGICALINSTRUMENTS COMPANY A TARGET OF BEARISH SHORTSELLERS JUMPED 6 1/2 TO 75 7/8 SOLID FOURTHQUARTER EARNINGS ALLAYED FEARS ABOUT GROWING COMPETITION IN ITS MARKET FOR INSTRUMENTS USED IN MINIMALLY INVASIVE LAPAROSCOPIC SURGERY ALEX BROWN ANALYST MARGARET SMITH RAISED HER RATING TO BUY FROM HOLD CITING STRONG SALES AND LOWER INVENTORIES US SURGICAL OFFICIALS IN NORWALK CONN WHO BLAME THE SHORTS FOR LAST YEAR'S 38 PLUNGE IN THEIR ONCEHIGHFLYING SHARES WERE GLEEFUL WE GOT THE SHORTS CHEERED US SURGICAL'S CHAIRMAN LEON HIRSCH IN A CONFERENCE CALL WITH ANALYSTS ACCORDING TO THOSE WHO LISTENED IN THE COMPANY WON'T CONFIRM THOSE WORDS BUT IT DOES QUOTE HIM AS BOASTING NONE OF THE SHORTSELLERS' SELFSERVING PREDICTIONS OF DOOM AND GLOOM CAME TRUE BUT BULLS ALSO RECOMMENDED THE STOCK LAST YEAR AT 120 AND LATER AT 90 ONE SHORT SAID YESTERDAY'S BALLYHOO AMOUNTS TO COMPLETELY MANUFACTURED EUPHORIA AT A TIME WHEN EARNINGS ESTIMATES CONTINUE TO DECLINE MR HIRSCH HIMSELF THE COMPANY'S LARGEST SHAREHOLDER HAS BEEN A HEAVY SELLER LAST YEAR HE SOLD AROUND 900000 US SURGICAL SHARES MANY AT PRICES ABOVE 100 HE RETAINS 18 MILLION SHARES AND ADDITIONAL OPTIONS A COMPANY SPOKESWOMAN CALLS MR HIRSCH'S SALES FAIRLY ROUTINE YEAR ENDED DEC 31 1991 9301210002 930121 FINANCING BUSINESS GENEVA STEEL GENEVA STEEL VINEYARD UTAH FILED A REGISTRATION STATEMENT FOR A PROPOSED PUBLIC OFFERING OF 125 MILLION PRINCIPAL AMOUNT OF SENIOR NOTES DUE 2001 AS PART OF A LARGER FINANCING PLAN IN ADDITION TO THE SENIOR NOTES GENEVA SAID THE PLAN INCLUDES A 30 MILLION PRIVATE PLACEMENT OF CUMULATIVE REDEEMABLE EXCHANGEABLE PREFERRED STOCK AND RELATED WARRANTS TO PURCHASE STOCK NET PROCEEDS ARE TO BE USED TO REPURCHASE UP TO 50 MILLION OF THE COMPANY'S DEBT AND TO FINISH GENEVA'S CONTINUOUS CASTER PROJECT CITICORP SECURITIES MARKETS AND SALOMON BROTHERS INC ARE UNDERWRITING THE OFFERING 9301210001 930121 WESTINGHOUSE POSTS DEFICIT FOR 4TH QUARTER BY STUART MIEHER STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH WESTINGHOUSE ELECTRIC CORP REPORTED A FOURTHQUARTER LOSS OF 118 BILLION OR 344 A SHARE REFLECTING LARGE WRITEDOWNS FROM DISCONTINUED OPERATIONS AND FLAGGING SALES IN ITS DEFENSE BUSINESS A YEAR EARLIER WESTINGHOUSE EARNED 171 MILLION OR 51 CENTS A SHARE PAUL LEGO THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID LOWERTHANEXPECTED ORDERS ALSO MAY DRAG EARNINGS FROM CONTINUING OPERATIONS IN THE CURRENT QUARTER BELOW LAST YEAR'S LEVEL WHICH ANALYSTS PUT AT 19 CENTS A SHARE ALTHOUGH WALL STREET HAD EXPECTED THE WRITEDOWNS IT WAS DISAPPOINTED AT THE COMPANY'S EARNINGS FROM CONTINUING OPERATIONS WHICH FELL 34 IN THE FOURTH PERIOD TO 91 MILLION OR 22 CENTS A SHARE FROM 137 MILLION OR 41 CENTS A SHARE ANALYSTS HAD EXPECTED A RESULT OF 28 TO 30 CENTS A SHARE SALES FELL SLIGHTLY TO 235 BILLION FROM 236 BILLION IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WESTINGHOUSE CLOSED AT 14 A SHARE DOWN 125 CENTS WESTINGHOUSE SAID MOST OF THE FOURTHQUARTER DECLINE CAME FROM LOWER SALES AND PROFIT IN ITS ELECTRONIC SYSTEMS BUSINESS UNIT WHICH WAS HIT BY DEFENSE PROCUREMENT REDUCTIONS AND A CHARGE THAT ANALYSTS PUT AT 35 MILLION FOR SEVERANCE PAYMENTS STEMMING FROM WORKFORCE CUTS THE COMPANY'S INDUSTRIES UNIT HAD A SLIGHT REVENUE DECLINE IN THE QUARTER AND A SUBSTANTIAL DECLINE IN OPERATING PROFIT OTHER CONTINUING OPERATIONS INCLUDING WESTINGHOUSE BROADCASTING AND THE ENVIRONMENTAL AND POWER SYSTEMS GROUPS SAW INCREASES IN REVENUE AND NET INCOME FOR THE QUARTER DISCONTINUED OPERATIONS INCLUDING THE COMPANY'S FINANCIAL SERVICES SUBSIDIARY POSTED A LOSS OF 127 BILLION OR 366 A SHARE THE COMPANY DIDN'T REPORT SALES FROM DISCONTINUED OPERATIONS AMONG THE DISCONTINUED OPERATIONS IS THE CREDIT UNIT WHICH REPORTED MORE THAN 5 BILLION IN WRITEDOWNS OVER THE PAST TWO YEARS AS IT STRUGGLED WITH BAD LOANS OTHERS INCLUDE ITS DISTRIBUTION & CONTROL AND ELECTRIC SUPPLY UNITS A REAL ESTATE DEVELOPER AND KNOLL GROUP AN OFFICE FURNITURE BUSINESS ALL THE DISCONTINUED OPERATIONS ARE TO BE SOLD OVER THE NEXT THREE YEARS TO RAISE CASH TO PAY 57 BILLION IN BANK DEBT THE COMPANY HAD AN EARLY SETBACK IN ITS DIVESTITURE PLAN LAST WEEK WITH THE FAILURE OF TALKS AIMED AT SELLING THE ENTIRE CREDIT UNIT TO GENERAL ELECTRIC CORP FOR THE FULL YEAR WESTINGHOUSE REPORTED A LOSS OF 129 BILLION OR 381 A SHARE COMPARED WITH A LOSS OF 109 BILLION OR 346 A SHARE IN 1991 EARNINGS FROM CONTINUING OPERATIONS ROSE 31 TO 348 MILLION OR 93 CENTS A SHARE FROM 265 MILLION OR 84 CENTS A SHARE SALES FROM CONTINUING OPERATIONS FELL 05 TO 845 BILLION FROM 849 BILLION 9301200187 930120 LETTERS TO THE EDITOR PLANNED PARENTHOOD SEEKS REAL ANSWERS A STATEMENT ABOUT PLANNED PARENTHOOD IN A DEC 30 LETTER TO THE EDITOR BY RAY PAGET OF BAPTISTS FOR LIFE IS MORE NOTEWORTHY FOR ITS FALSEHOODS AND DISTORTIONS THAN FOR ANY LIGHT IT SHEDS ON THE ISSUES OF ADOPTION OR ABORTION PLANNED PARENTHOOD AS THE WORLD'S OLDEST AND LARGEST VOLUNTARY REPRODUCTIVEHEALTHCARE ORGANIZATION DOES MORE TO REDUCE THE NEED FOR ABORTION THAN DO ALL THE ANTIABORTION ORGANIZATIONS COMBINED OUR 922 CLINICS PROVIDE CONTRACEPTIVE EDUCATIONAL AND OTHER FAMILYPLANNING SERVICES FOR NEARLY FIVE MILLION AMERICANS EACH YEAR MOREOVER WHEN A WOMAN WHO CONFRONTS AN UNINTENDED PREGNANCY COMES TO A PLANNED PARENTHOOD CENTER SHE RECEIVES INFORMATION AND COMPREHENSIVE SENSITIVE COUNSELING ON ALL HER OPTIONS INCLUDING CARRYING HER PREGNANCY TO TERM AND PLACING THE BABY FOR ADOPTION IN CONTRAST WHAT WOULD SHE RECEIVE AT A SOCALLED CRISIS PREGNANCY CENTER LIES INTIMIDATION AND SCARE TACTICS ALL INTENDED TO LIMIT HER CHOICES RATHER THAN EXAMINE CAREFULLY THOSE THAT ARE AVAILABLE IN RECENT YEARS PLANNED PARENTHOOD HAS HAD TO DEVOTE INORDINATE ENERGY AND RESOURCES TO DEFENDING ONE OF THOSE CHOICES ABORTION PRECISELY BECAUSE ANTIABORTION EXTREMISTS LIKE MR PAGET ARE INTENT ON CRIMINALIZING IT AND DENYING WOMEN THE RIGHT TO DECIDE FOR THEMSELVES IF ANY OF A WOMAN'S OTHER CHOICES FOR MANAGING AN UNINTENDED PREGNANCY WERE SIMILARLY THREATENED WE WOULD BE EQUALLY STALWART WITH FULLPAGE ADS IF NECESSARY IN WORKING TO PRESENT HER RIGHT TO CHOOSE THOUGH GIVING UP A CHILD FOR ADOPTION IS A CHOICE THAT SOME WOMEN ELECT ADOPTION IS CLEARLY NOT A SOLUTION TO THE PROBLEM OF UNWANTED CHILDBIRTH IF IT WERE WE WOULD NOT HAVE THOUSANDS OF UNWANTED INFANTS AND CHILDREN LANGUISHING IN HOSPITALS AND OTHER PUBLIC INSTITUTIONS UNLOVED ABANDONED AND UNADOPTED SEARCHING FOR REAL ANSWERS REQUIRES GETTING AT THE CORE PROBLEM WHICH IS AMERICA'S TRAGIC RATE OF UNINTENDED PREGNANCY THAT HAS ALWAYS BEEN PLANNED PARENTHOOD'S FUNDAMENTAL MISSION BUT IT IS ONE ON WHICH NOCHOICE PARTISANS ARE CURIOUSLY SILENT PLANNED PARENTHOOD FEDERATION OF AMERICA INC 9301200185 930120 INAUGURATION A SPECIAL REPORT THE ISSUES POSTMORTEM NOV 6 1996 CLINTON BEATS CHENEY IN LANDSLIDE BY KEVIN PHILLIPS BILL CLINTON KNEW THAT HIS 1996 REELECTION HAD BECOME A PRETTY SURE THING WHEN THE MIDTERM ELECTION RESULTS WERE TABULATED IN NOVEMBER OF 1994 REAL ECONOMIC GROWTH HAD BEEN MODEST FOR MOST OF 199394 HOLDING IN THE RANGE OF 1 1/2 TO 2 1/2 A YEAR BUT THE REASSURING MIDTERM OUTCOME REPUBLICANS GAINED A LACKLUSTER TWO SEATS IN THE SENATE AND JUST 11 IN THE HOUSE SIGNALED THAT VOTERS CONTINUED TO PUT A FAIR PART OF THE BLAME ON THE DEPARTED BUSH ADMINISTRATION MORE IMPORTANT THEY STILL ACCEPTED THE DEMOCRATIC THESIS THAT BASIC ECONOMIC CHANGES WERE TAKING HOLD AND THAT FAIRNESS TO THE MIDDLE CLASS REMAINED A WHITE HOUSE PRIORITY THAT ECONOMIC VERDICT WAS THE BALLGAME BECAUSE ALTHOUGH GOP STRATEGISTS CONTINUED TO INSIST THAT THE SOCALLED REAGAN COALITION WAS ALIVE AND WELL IN PHOENIX AND PACIFIC PALISADES JUST WAITING TO REEMERGE IT NEVER DID NOW THE DEMOCRATS WHO PROCLAIMED THE 1992 ELECTION A WATERSHEDTOBE IF THE ECONOMY COOPERATED HAVE BEEN PROVED LARGELY CORRECT ALL BUT A HANDFUL OF 1992 CLINTON SUPPORTERS PULLED THE DEMOCRATIC LEVER AGAIN ALONG WITH A FEW BUSH VOTERS AND ABOUT TWOTHIRDS OF 1992 PEROT BACKERS IN FACT MR CLINTON'S 57 OF THE TOTAL PRESIDENTIAL VOTE ISN'T ALL THAT SURPRISING GIVEN THE SIMILAR OR GREATER REELECTION MARGINS OF MANY OTHER POSTWAR CHIEF EXECUTIVES EISENHOWER IN 1956 JOHNSON IN 1964 NIXON IN 1972 AND REAGAN IN 1984 SUCH REELECTION LOSERS AS CARTER AND BUSH IT NOW SEEMS WERE FLUKES NOT PRECEDENTS FOR A FEW MONTHS DURING THE SUMMER OF 1995 AFTER MR CLINTON HAD GOTTEN THE US INTO AND OUT OF THE SHORTLIVED INGLORIOUS SECOND SERBIAN WAR REPUBLICANS SAW A CHANCE OF EMBARRASSING THE DEMOCRATIC PRESIDENT GEORGE BUSH'S GREATER MILITARY SUCCESS IN THE PERSIAN GULF AFTER ALL HAD TURNED TO POLITICAL ASHES IN LESS THAN A YEAR SO REPUBLICAN WISE MEN PUSHING ASIDE THE DISAPPOINTING MIDTERMS ROUSED THEMSELVES TO SETTLE ON FORMER DEFENSE SECRETARY DICK CHENEY AS THE MAN WHO COULD EXPLAIN WHY KUWAIT HAD BEEN A WINNER AND KOSOVO A LOSER IN THE END HOWEVER MR CHENEY HIMSELF WAS A LOSER ALTHOUGH NONE OF THE OTHER REPUBLICANS WHO ARE BADMOUTHING HIS 43 SHOWING WOULD HAVE DONE ANY BETTER MR CHENEY WAS SMART A MODERATE CONSERVATIVE ACCEPTABLE TO GOP FUNDRAISERS AND POWER BROKERS ALIKE BUT HE WAS AS COLORLESS AS GERALD FORD FOR WHOM HE HAD WORKED HAILED FROM A SMALL STATE AND HAD A LONGSTANDING HEART CONDITION NOR DID VOTERS PARTICULARLY WANT TO HEAR ABOUT THE BALKANS OR FOR THAT MATTER ABOUT THE PENTAGON BESIDES MR CHENEY CONCEDED TOO MUCH TO THE RELIGIOUS RIGHT IN THE GOP PLATFORM HEARINGS AND HE HAD NO FEEL FOR THE ECONOMY SO HE WOUND UP CARRYING ONLY HIS HOME STATE OF WYOMING ALONG WITH IDAHO UTAH ARIZONA NEBRASKA INDIANA SOUTH CAROLINA AND FLORIDA ADMITTEDLY MR CLINTON GOT OFF TO A ROCKY START THE LATE 1992 NATIONAL ECONOMIC UPTICK PARTLY REFLECTING HOW THE BUSH WHITE HOUSE AND THE GREENSPAN FEDERAL RESERVE HAD AIMED FISCAL AND MONETARY STIMULUS AT THE PREELECTION AUTUMN COMPLICATED THE INCOMING ADMINISTRATION'S EARLY STRATEGY PHILOSOPHICALLY MR CLINTON COULD CONTINUE TO TALK ABOUT HOW STRUCTURAL WEAKNESS IN THE ECONOMY REQUIRED NEW LONGTERM PRIORITIES BUT THE SEEMINGLY IMPROVED ECONOMY UNDERCUT HIS IMMEDIATE SHORTTERM REASONS FOR A MIDDLECLASS TAX CUT AND FORCED HIM TO PAY MORE ATTENTION TO RESTRAINING THE FEDERAL BUDGET DEFICIT A TRADITIONALLY UNPROFITABLE PREOCCUPATION FOR DEMOCRATIC PRESIDENTS MR CLINTON'S LUCK RETURNED THOUGH THE ECONOMY SOFTENED AGAIN IN 1993 PARTLY BECAUSE US EXPORTS DECLINED AS EUROPE AND ASIA SLID FURTHER INTO RECESSION AND PARTLY BECAUSE THE UNDERLYING RECOVERY IN THE US HAD BEEN OVERSTATED LARGE US CORPORATIONS WERE STILL SLICING AWAY MIDDLECLASS JOBS WORRIED EXPORT INDUSTRIES ACROSS THE GREAT LAKES WERE STARTING TO REDUCE OUTPUT AND EMPLOYMENT REAL HOUSEHOLD INCOMES IN NEW ENGLAND NEW YORK AND CALIFORNIA WERE STILL WELL BELOW THEIR 1989 LEVELS AND FROM LONG ISLAND TO LONG BEACH FRIGHTENED STATE AND LOCAL GOVERNMENTS CONTINUED TO SLASH SERVICES AND PAYROLLS BACK IN NOVEMBER OF 1992 SUCH FEARS HAD ENABLED MR CLINTON TO BREAK THE REPUBLICAN PRESIDENTIAL HOLD ON SUBURBAN VOTERS FOR THE FIRST TIME SINE 1964 SO AS THE UPBEAT ECONOMIC HOPES OF JANUARY TURNED INTO THE RENEWED NATIONAL SKEPTICISM OF MAY AND JUNE THE EFFECT PARADOXICALLY WAS TO HELP THE NEWLY INAUGURATED PRESIDENT AFTER ALL A SOLID LATE1992 RECOVERY WOULDN'T HAVE BEEN HIS DOING AND A CONTINUING 1993 SURGE WOULD HAVE REDUCED MR CLINTON'S ABILITY TO RESUME THE ECONOMIC CRITIQUE THAT HAD HELPED HIM CARRY DOZENS OF NORMALLY REPUBLICAN SUBURBAN COUNTIES HOWEVER AS MR CLINTON'S PESSIMISM ABOUT GOP ECONOMICS REGAINED ITS BITE IN THE MID1993 SLOWDOWN HE ROSE TO THE OCCASION REITERATING THE COMMITMENTS TO THE MIDDLE CLASS ON TAX FAIRNESS AND HEALTH INSURANCE THAT HE HAD MADE A CENTERPIECE OF HIS 1992 CAMPAIGN EVEN THE BOND MARKETS SEEING THE RENEWED NATIONAL SLOWDOWN UNDERSTOOD THAT SOME IMMEDIATE STIMULUS WAS INEVITABLE WALL STREET ONLY HALFHEARTEDLY INSISTED THAT MR CLINTON CHOOSE BETWEEN BREAKING HIS PROMISES TO THE MIDDLE CLASS ON TAXES AND ENTITLEMENTS OR RISKING AN INTERESTRATE SPIRAL THE CLINTON RHETORIC THAT HAD WORKED IN 1992 WORKED AGAIN WITH SOME UPDATING IN 1993 AND 1994 AS THE PRESIDENT ATTACKED HIS OLD BOGEYMEN OF POWERFUL INTEREST GROUPS AND THE PEOPLE WHO PROFITED IN THE 1980S AS THE MIDDLE CLASS GOT SQUEEZED THEY WERE JUST LIKE MR BUSH HE SAID IN 1994 AS THE MIDTERM CAMPAIGN BEGAN TO HEAT UP ALL THEY WANT TO DO IS CUT CAPITALGAINS TAXES FOR THE RICH AS 1995 BEGAN THERE WASN'T MUCH TO CHEER THE REPUBLICANS MR CLINTON SEEMED TO HAVE HIS DUCKS NOT TO MENTION HIS DIVERSIONS AND HIS SCAPEGOATS IN A ROW AND THE LUKEWARM ECONOMY STIRRED MEMORIES OF THE BUSH YEARS THAT KEPT VOTERS FROM TURNING TO THE SOCIAL ISSUES THAT REPUBLICAN STRATEGISTS WERE EAGER TO REEMPHASIZE MOREOVER IN THE SPRING WHEN CAPITAL MARKETS HERE AND ABROAD SOUGHT TO FORCE MR CLINTON TO REAPPOINT ALAN GREENSPAN TO ANOTHER TERM AS FED CHAIRMAN OR TO PICK SOMEONE EQUALLY COMMITTED TO DEFICIT REDUCTION MR CLINTON STYMIED THEM BY FLOATING AN IDEA THAT ROSS PEROT AND EVEN SOME REPUBLICAN SENATORS HAD EARLIER PLAYED WITH HE TOLD THE GERMANS AND THE JAPANESE THAT IF THEY DIDN'T BUY US BONDS AT A HELPFUL RATE THE US WOULD PULL ITS TROOPS OUT OF EUROPE AND ASIA OR SEND TOKYO AND BERLIN THE BILL SENIOR OFFICIALS OF THE BANK OF JAPAN AND THE BUNDESBANK WERE FURIOUS BUT IT WAS A REDLETTER SEASON FOR MR CLINTON A GLEEFUL MR PEROT HINTED THAT HE WOULDN'T RUN IN 1996 AND MIGHT EVEN ENDORSE THE MAN IN THE WHITE HOUSE IN THE END MR PEROT DIDN'T PLAY MUCH PART IN THE 1996 ELECTION BECAUSE HE WAS BOXED IN MR CLINTON WASN'T REALLY DOING MUCH ABOUT THE DEFICIT BUT WITH A LOWGROWTH ECONOMY IT WAS EASY TO SEE WHY AND MR CLINTON'S ONGOING PEROTLIKE TOWN MEETINGS AND FRANKLIN ROOSEVELTLIKE ATTACKS ON THE ENTRENCHED ECONOMIC ELITES DIDN'T LEAVE A LOT OF ROOM THERE EITHER THE DEMOCRATS PONDERING THE SAME CIRCUMSTANCES AS WELL AS MR CLINTON'S POPULARVOTE MAJORITY AND ELECTORAL COLLEGE LANDSLIDE TOOK ONLY A FEW MINUTES AFTER THE POLLS CLOSED IN CALIFORNIA TO PROCLAIM THAT 1996 HAD VALIDATED 1992 AS A WATERSHED AND CEMENTED A NEW ERA OF DEMOCRATIC CONTROL OF THE WHITE HOUSE THE SECOND PART OF THAT EQUATION IS STILL A LITTLE DUBIOUS BUT THERE IS A GROWING CASE TO BE MADE FOR THE WATERSHED PREMISE AND EVEN FOR THE POSSIBILITY OF MR CLINTON'S BECOMING A MAJOR HISTORICAL FIGURE MR PHILLIPS IS THE PUBLISHER OF THE AMERICAN POLITICAL REPORT HIS NEW BOOK BOILING POINT REPUBLICANS DEMOCRATS AND THE DECLINE OF MIDDLECLASS PROSPERITY IS BEING PUBLISHED THIS MONTH BY RANDOM HOUSE SEE RELATED ARTICLE POSTMORTEM NOV 6 1996 CLINTON FAILS IN REELECTION BID WSJ JAN 20 1993 9301200184 930120 INAUGURATION A SPECIAL REPORT FOREIGN FOCUS EXECUTIVE VIEW BUSINESS LEADERS ABROAD WERE ASKED ABOUT A CLINTON PRESIDENCY HERE'S WHAT THEY SAID BY JANET GUYON EXECUTIVES IN EUROPE ARE GAZING ACROSS THE ATLANTIC WITH OPTIMISM AS THE FIRST DEMOCRAT IN 12 YEARS STEPS INTO THE WHITE HOUSE ALTHOUGH MOST FELT VERY COMFORTABLE WITH GEORGE BUSH THEY APPLAUD BILL CLINTON'S PROGRAMS TO INVEST IN AMERICA'S CRUMBLING INFRASTRUCTURE AND ACKNOWLEDGE THAT THE US NEEDED A BREATH OF FRESH AIR MR BUSH'S PREDICTIONS ABOUT THE END OF THE RECESSION SEEM TO BE COMING TRUE ON MR CLINTON'S WATCH IF THE US DOES EMERGE FROM THE ECONOMIC DOLDRUMS EUROPEAN BUSINESS LEADERS SAY ITS REVIVAL COULD PULL EUROPE AND THE REST OF THE WORLD OUT OF THEIR MALAISE THERE'S A NEW ATMOSPHERE IN THE US SAYS CARLO DE BENEDETTI CHAIRMAN OF ING C OLIVETTI & CO AN ITALIAN COMPUTER MAKER SINCE THE ELECTION I'VE FOUND A MUCH MORE OPTIMISTIC VIEW YET MANY EXECUTIVES VOICE CONCERNS ABOUT THE FORMER GOVERNOR OF ARKANSAS SIR DENYS HENDERSON CHAIRMAN OF IMPERIAL CHEMICALS INDUSTRIES PLC IN LONDON ECHOES OTHER EUROPEAN INDUSTRIALISTS WHO ARE WORRIED ABOUT MR CLINTON'S PLANS TO TRIM HEALTHCARE COSTS AND SOCK FOREIGN COMPANIES OPERATING IN THE US WITH INCREASED TAX LIABILITIES THERE'S A HONEYMOON WITH THE PRESS RIGHT NOW SAYS LORD WHITE CHAIRMAN OF HANSON INDUSTRIES HANSON PLC'S US SUBISIDIARY BUT IF CLINTON LETS THEM DOWN THEY'LL TURN ON HIM WHAT FOLLOWS ARE THE VIEWS OF THE LEADERS OF SOME OF EUROPE'S BIGGEST BUSINESSES THE US IS DEFINITELY ON ITS WAY TO RECOVERY ARGUES MICHEL FRANCOISPONCET IT'S THE RESULT OF EFFORTS MADE IN THE LAST TWO OR THREE YEARS IN IMPROVEMENT IN CORPORATE STRUCTURES AND EFFICIENCIES HE SAYS MOST STRIKING HE ADDS IS THAT THE BANKING INDUSTRY IS BACK ON TRACK HE PREDICTS THAT THE MERGER BETWEEN CHEMICAL AND MANUFACTURERS HANOVER WILL BE VERY SUCCESSFUL AND VIEWS IT AS EMBLEMATIC OF THE INDUSTRY'S RECOVERY WITH CONSUMPTION ALSO PICKING UP SAYS MR FRANCOISPONCET WE SHOULD HAVE A GOOD YEAR IN THE US IN 1993 STILL HE SEES TWO MAJOR PROBLEMS REMAINING UNEMPLOYMENT IS STILL STRONG AND THERE ISN'T ANY SIGN OF RECOVERY IN THE REALESTATE MARKET THE REALESTATE SITUATION WILL BE A LONGLASTING ONE HE SAYS THE CHANGE IN CONSUMER BEHAVIOR IS PARTLY THE CLINTON EFFECT SAYS MR FRANCOISPONCET BUT IT IS ALSO THE RESULT OF TWO OR THREE YEARS OF RESTRUCTURING UNDER MR BUSH THE CHIEF WORRY FOR EUROPEAN COMPANIES IS THE POSSIBILITY OF INCREASED TAXES I WOULDN'T SAY EUROPEAN COMPANIES WOULD PULL OUT OF THE U S FOR TAX REASONS SAYS MR FRANCOISPONCET BUT THERE IS A FEELING OF UNCERTAINTY SIMILARLY THERE IS UNCERTAINTY ABOUT MR CLINTON'S TRADE VIEWS IF GATT THE GENERAL AGREEMENT ON TARIFFS AND TRADE EXPLODES OR COLLAPSES WE ARE HEADING FOR A SPLIT INTO SEVERAL TRADE ZONES SAYS THE BANKER BUT MR FRANCOISPONCET DOESN'T SEE THE US BECOMING TOO ISOLATIONIST AMERICA DOES HAVE ITS DOMESTIC PROBLEMS CRUMBLING INFRASTRUCTURE POVERTY HIGH UNEMPLOYMENT WE HAVE BOUTS OF THAT IN EUROPE TOO HE CONCEDES I DON'T BELIEVE BY FOCUSING ON THESE PROBLEMS THAT ISOLATIONISM IS TAKING OVER I ALWAYS HAVE A MOTTO HE ADDS WHICH IS TO SAY NEVER SELL AMERICA SHORT IAN MARTIN MAY BE GRAND MET'S CHIEF OPERATING OFFICER IN LONDON BUT HE SOUNDS AS IF HE WORKS FOR MERRILL LYNCH I'M BULLISH ON THE FUTURE OF THE US HE SAYS SINCE THE ELECTION WE'VE SEEN A RESURGENCE OF CONFIDENCE AMONG US CONSUMERS HE NOTES WITH A SPATE OF POSITIVE ECONOMIC INDICATORS CONFIDENCE AMONG US CONSUMERS IS IMPORTANT BECAUSE THEY HAVE MONEY UNLIKE THOSE IN THE UK WHO HAVE NEITHER MONEY NOR CONFIDENCE SAYS MR MARTIN IN THE US THE LOW LEVEL OF ACTIVITY HAS BEEN ABOUT A LACK OF CONFIDENCE HE SAYS NOT OF DOLLARS FOR CONSUMPTION TO EUROPEAN BUSINESSES IN SUCH GLOBAL MARKETS AS FOOD AND LIQUOR LIKE GRAND MET THE US LOOKS PARTICULARLY GOOD THE DISARRAY IN EUROPE'S CURRENCYSTABILIZATION MECHANISM HAS MADE PROJECTIONS ABOUT THE COST OF DOING BUSINESS EXTREMELY DIFFICULT OUR PRICING STRATEGY HAS BEEN BLOWN TO SMITHEREENS SAYS MR MARTIN THAT'S WHY BUSINESSMEN WANT THE ERM EXCHANGERATE MECHANISM BACK IN CONTRAST HE POINTS OUT THE US HAS A LARGE MARKET AND A STABLE CURRENCY THERE'S NO DOUBT THAT THE US IS STILL THE MOST EXCITING MARKET FOR BRANDED CONSUMER GOODS IN THE WORLD MOREOVER MR MARTIN ADDS DESPITE THE US RECESSION INNOVATION HAS CONTINUED STILL MR MARTIN WARNS THAT WHILE THE AMERICAN ECONOMY MAY BE COMING BACK EMPLOYMENT WON'T SURGE AS FAST US COMPANIES ARE STILL SLIMMING DOWN EUROPE ADDRESSED THAT ISSUE EARLIER SAYS THE EXECUTIVE HE ALSO EXPRESSES CONCERN OVER MR CLINTON'S CAMPAIGN TALK ABOUT INCREASING TAXES ON FOREIGN COMPANIES WHAT WE DON'T KNOW IS WHETHER THAT WAS THE RESULT OF THE HUSTINGS AND HOW MUCH IS POLICY BUT EUROPEAN BUSINESSES ARE WATCHING THAT CAREFULLY GRAND MET HE NOTES HAS 60 OF ITS SALES AND EMPLOYEES IN THE US WE DON'T CONSIDER OURSELVES A FOREIGN COMPANY BECAUSE HE SEES ONLY MODEST SIGNS OF AN UPTURN IN ICI'S BUSINESS SIR DENYS IS LESS OPTIMISTIC THAN SOME OF HIS EUROPEAN COUNTERPARTS ABOUT AMERICA'S SUPPOSED EMERGENCE OUT OF RECESSION HE HAS MANY QUESTIONS ABOUT MR CLINTON WE KNOW HE WENT TO OXFORD BUT AS AN INTERNATIONALIST WE AREN'T SURE WHERE HE IS GOING SAYS THE ICI CHAIRMAN WE HAVE WATCHED AND READ AND EVERYONE ASSURES US THAT HE IS AN EXTREMELY ASTUTE POLITICIAN BUT AT SOME POINT MR CLINTON WILL FACE TOUGH ISSUES RELATING TO THE MIDDLE EAST SAYS THE EXECUTIVE RUSSIA LOOMS AS WELL WILL HE SUPPORT YELTSIN WHAT WILL HE DO IN CHINA ASKS SIR DENYS FORMER PRESIDENT BUSH WAS A FAMILIAR FIGURE AN INTERNATIONALIST WHO BELIEVED IN FREE TRADE AND WHO WON THE GULF WAR HANDILY HE SAYS WE HAVE NO SENSE THAT MR CLINTON ISN'T UP TO THE TASK SIR DENYS CONTINUES HE HAS TAKEN A LOT OF TROUBLE TO SURROUND HIMSELF WITH ADVISERS THAT HAVE INTERNATIONAL EXPERTISE BUT THE EXECUTIVE EXPRESSES CONCERN ABOUT THE POSSIBILITY OF MR CLINTON'S LISTENING TOO CLOSELY TO PROTECTIONIST SENTIMENTS FROM CONGRESS PARTICULARLY IF THE GATT TALKS AREN'T CONCLUDED BY THE TIME OF HIS INAUGURATION SIR DENYS BELIEVES THAT THE US WHILE VOLATILE WITNESS HOW QUICKLY IT FELL INTO GLOOM AFTER THE EUPHORIA OF WINNING THE WAR IN THE PERSIAN GULF IS A FUNDAMENTALLY OPTIMISTIC NATION IF THE BANKS HAVE THE LIQUIDITY TO LEND HE SAYS THEN PERHAPS THE SENSATION OF A NEW YOUNG PRESIDENT WHO HAS A PROGRAM TO GET THE US OUT OF RECESSION ALLIED TO SUCCESS IN THE GATT TALKS COULD GIVE EUROPEAN BUSINESS EXECUTIVES A RENEWED CONFIDENCE IN THE PROSPECTS OF THE COUNTRY ACROSS THE ATLANTIC CHAIRMAN OF ING C OLIVETTI & CO THE GLOBETROTTING CHAIRMAN OF THE ITALIAN COMPUTER MAKER REFLECTS ON THE WAY AMERICANS EUROPEANS AND JAPANESE REACT TO CHANGE EUROPEANS FEAR IT HE SAYS THE JAPANESE ARE TERRORIZED BY IT AMERICANS EMBRACE IT EVEN PEOPLE WHO OPPOSED CLINTON VIEW CHANGE AS NURTURING SAYS MR DE BENEDETTI HE TELLS OF HIS CONVERSATION WITH THE HEAD OF A LARGE US PHARMACEUTICAL COMPANY WHO COMPLAINED BITTERLY ABOUT MR CLINTON'S PLANS TO CUT HEALTHCARE COSTS BY CAPPING DRUG PRICES DID THE DRUG MAN VOTE FOR PRESIDENT BUSH HE SAID HE VOTED FOR CLINTON SAYS MR DE BENEDETTI THE DRUGCOMPANY EXECUTIVE KNOWS THAT HIS COMPANY WILL BE PUNISHED BY SUCH POLICY CHANGES IN THE NEXT TWO OR THREE YEARS BUT HE SAID THAT AMERICA'S LONGTERM HEALTH REQUIRES CHANGE THIS IS THE REASON I AM MUCH MORE OPTIMISTIC ABOUT THE US THAN ABOUT ANY OTHER OF THE TRIAD SAYS MR DE BENEDETTI HE DOESN'T KNOW WHAT THAT OPTIMISM MAY MEAN FOR THE US ECONOMY OR THE WORLD ECONOMY BUT THE CONFIDENCE INSPIRED CAN ONLY HAVE A POSITIVE EFFECT POLITICALLY AMERICA IS DEMONSTRATING THE SUPERIORITY OF ITS SYSTEM HE SAYS IF WE START SEEING A RECOVERY WE WILL SEE IT FROM THE US FIRST MR DE BENEDETTI ADDS AS AN ITALIAN I SHOULDN'T BE ALLOWED TO TALK ABOUT MANAGING THE BUDGET BUT AMERICA ALREADY HAS TOO MUCH DEBT WE AS ITALIANS CAN TEACH YOU HOW TO DO IT BUT IT'S VERY HARD TO SPEND MORE THAN YOU EARN IF MONEY MUST BE RAISED AMERICA HAS AN ENORMOUS RESERVE OF UNTAPPED REVENUE POTENTIAL IN THE FORM OF GASOLINE TAXES HE SAYS MONEY FOR UPGRADING THE US INFRASTRUCTURE COULD LOGICALLY COME FROM INCREASING SUCH TXES SAYS MR DE BENEDETTI HIS ONE AREA OF CONCERN IS MR CLINTON'S FOREIGN POLICY DEMOCRATS TEND TO BE MORE MOTIVATED THAN REPUBLICANS BY HUMAN RIGHTS WHEN MAKING DECISIONS ABOUT US POLICY ABROAD THE RELATIONSHIP BETWEEN THE US AND CHINA COULD DETERIORATE IF THE US SHOWS INCREASED SENSITIVITY ABOUT THAT COUNTRY'S HUMANRIGHTS ISSUES THAT WOULD BE A BIG MISTAKE BECAUSE THAT WILL LEAVE TO JAPAN AN INCREDIBLE OPPORTUNITY SAYS MR DE BENEDETTI MY SECOND FEAR REFLECTS EUROPE SAYS THE EXECUTIVE WITH THE SERIOUS OBSTACLES TO A UNIFIED EUROPE AND BIG CRACKS IN THE ERM PROMISING CURRENCY INSTABILITY HE IS APPREHENSIVE THAT THE US WILL SAY WE DON'T UNDERSTAND YOU ANYMORE WE DON'T NEED YOU MS GUYON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S LONDON BUREAU 9301200183 930120 INTERNATIONAL BRITISH AEROSPACE AND TAIWAN CONCERN SIGN ACCORD TO BUILD REGIONAL AIRCRAFT BY WALL STREET JOURNAL REPORTERS BRIAN COLEMAN IN BRUSSELS AND JEREMY MARK IN TAIPEI TAIWAN BRITISH AEROSPACE PLC AND TAIWAN AEROSPACE CORP SIGNED THEIR LONGAWAITED JOINT VENTURE TO BUILD REGIONAL AIRCRAFT AS EXPECTED UNDER THE AGREEMENT THE COMPANIES WILL FORM A 5050 VENTURE TO JOINTLY PRODUCE MARKET AND SERVICE THE BRITISH COMPANY'S REGIONAL JETLINER FAMILY OF SHORTHOP 70TO115SEAT AIRCRAFT BASED ON THE BAE146 DESIGN TAIWAN AEROSPACE WILL PAY ITS UNITED KINGDOM PARTNER 120 MILLION 184 MILLION IN SEVERAL PAYMENTS PLUS 25 MILLION ON DELIVERY OF THE FIRST AIRCRAFT TO BE ASSEMBLED IN TAIWAN THE JOINT VENTURE WITH TOTAL ASSETS OF 240 MILLION WILL BE CALLED AVRO INTERNATIONAL AEROSPACE LTD FOLLOWING THE ANNOUNCEMENT BRITISH AEROSPACE SHARES ROSE 48 TO 194 PENCE FROM 185 PENCE IN LONDON TRADING FOR FINANCIALLY STRAPPED BRITISH AEROSPACE THE DEAL BRINGS IN FRESH CASH AND PROMISES A BRIGHTER FUTURE FOR AN AIRCRAFT MODEL THAT ONLY SIX MONTHS AGO WAS WRITTEN OFF BY MANY ANALYSTS TAIWAN AEROSPACE MEANWHILE TAKES ITS FIRST MAJOR STEP TOWARD FULFILLING ITS DREAM OF BECOMING A PROMINENT AEROSPACE MANUFACTURER THIS AGREEMENT WILL BE GOOD NEWS TO ALL OUR MANY BAE146 AND REGIONAL JETLINER CUSTOMERS AROUND THE WORLD AND ALSO TO SOME 4000 BRITISH AEROSPACE EMPLOYEES SAID BRITISH AEROSPACE CHAIRMAN JOHN CAHILL WHILE FEW ANALYSTS EXPECT THE DEAL TO BE A PANACEA FOR BRITISH AEROSPACE'S MANY AILMENTS THE COMPANY APPEARS FOR NOW TO HAVE CURED ONE OF ITS MOST NAGGING HEADACHES THE REGIONAL AIRCRAFT UNIT REGULARLY LOSES MONEY IN SEPTEMBER BRITISH AEROSPACE SAID IT WAS SETTING ASIDE ABOUT 1 BILLION FOR RESTRUCTURING MUCH OF IT FOR REGIONAL AIRCRAFT ACTIVITIES THE COMPANY ALREADY HAS ANNOUNCED THE CLOSURE OF ITS HATFIELD PLANT ELIMINATING ABOUT 3000 JOBS OR 27 OF THE REGIONAL AIRCRAFT UNIT'S EMPLOYMENT THE RESTRUCTURING PROVISIONS COMPRISING OF 750000 IN PROVISIONS AND A 250000 TAX CREDIT HAD SET THE STAGE FOR A SHUTDOWN OF THE UNIT IN THE EVENT TALKS WITH TAIWAN AEROSPACE FAILED WE WENT AROUND EXHAUSTIVELY IN SEARCH OF A PARTNER MR CAHILL SAID THE BEST PARTNER WE COULD HAVE WAS TAIWAN AEROSPACE IN PARTICULAR MR CAHILL SAID THE DEAL WITH TAIWAN AEROSPACE WILL BOOST THE AIRCRAFT'S MARKETABILITY IN ASIA THE WORLD'S FASTEST GROWING MARKET FOR AIRPLANES AND PRODUCTION IN TAIWAN WILL HELP KEEP COSTS DOWN HE SAID THE FRESH CASH FROM THE DEAL WITH TAIWAN AEROSPACE WILL ALSO GIVE BRITISH AEROSPACE SOME BREATHING ROOM IN CLEANING UP ITS HOUSE BRITISH AEROSPACE HAS NOW GOT MORE MONEY FROM ITS PROVISIONS TO RATIONALIZE THE REST OF THE BUSINESS SAID PETE DEIGHTON AEROSPACE ANALYST FOR SMITH NEW COURT SECURITIES LTD ONE OF THE FIRST PRIORITIES FOR RESTRUCTURING IS EXPECTED TO BE BRITISH AEROSPACE'S TURBOPROP AIRCRAFT UNIT IN THE FIRST HALF OF 1992 BRITISH AEROSPACE STUNNED THE FINANCIAL MARKETS BY ANNOUNCING IT HAD SWUNG TO A PRETAX LOSS OF 129 MILLION AS A RESULT OF THE COMMERCIAL AIRCRAFT UNIT'S PRETAX LOSSES OF 286 MILLION OF THE PRETAX LOSSES AT THE UNIT 167 MILLION WAS ATTRIBUTED TO THE REGIONAL JETLINER AND 111 MILLION TO TURBOPROP ACTIVITIES YESTERDAY ANALYSTS FORECAST THAT BRITISH AEROSPACE WILL REPORT PRETAX LOSSES OF ABOUT 1 BILLION FOR 1992 COMPARED WITH A PROFIT BEFORE TAX AND EXCEPTIONAL ITEMS OF 154 MILLION IN 1991 BEGUN IN EARLY 1991 WITH PRIVATESECTOR AND GOVERNMENT BACKING TAIWAN AEROSPACE INITIALLY THRIVED ON ITS LINKS TO TAIWAN'S MILITARY BUT IT IS NOW FOCUSED ON ITS CORPORATE BACKERS THAT INCLUDE SOME OF TAIWAN'S LARGEST CONGLOMERATES THE CATALYST FOR THE EVOLUTION WAS TAIWAN AEROSPACE'S ILLFATED BID LAST YEAR TO ACQUIRE A MAJOR STAKE IN THE COMMERCIALAIRCRAFT DIVISION OF MCDONNELL DOUGLAS CORP OF THE US THAT PROPOSED VENTURE SOUGHT TO ACHIEVE ON A MUCHGRANDER SCALE THE SAME GOAL AS THE BRITISH AEROSPACE UNDERTAKING BUT THE PROPOSAL TO JOINTLY BUILD A NEW GENERATION OF JUMBO JETLINER WHICH COULD HAVE COST TAIWAN AS MUCH AS 7 BILLION MET INTENSE OPPOSITION FROM TAIWAN LEGISLATORS AND INDIFFERENCE FROM BUSINESSMEN WHO WERE ASKED TO HELP FOOT THE BILL THE PROPOSAL EXPIRED LAST JUNE AFTER TAIWAN AEROSPACE BACKED OUT OF ITS PROPOSAL TO INVEST INITIALLY UP TO 2 BILLION IN MCDONNELL DOUGLAS 9301200182 930120 WHO'S NEWS CADENCE DESIGN SYSTEMS INC CADENCE DESIGN SYSTEMS INC SAN JOSE CALIF LEONARD Y W LIU 51 YEARS OLD WAS NAMED CHIEF OPERATING OFFICER AT THIS SOFTWARE COMPANY HE SUCCEEDS GEORGE KLAUS 51 WHO LEFT THE COMPANY AFTER A REORGANIZATION 9301200181 930120 INTERNATIONAL THYSSEN STEEL UNITS SHOW SHARP DROPS IN 1992 RESULTS BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL UNDERSCORING THE CRITICAL STATE OF EUROPE'S STEEL INDUSTRY GERMAN INDUSTRIAL GROUP THYSSEN AG REPORTED A STEEP DROP IN FISCAL 1992 RESULTS AT ITS SPECIALTY STEEL AND BASIC STEEL DIVISIONS AND SAID IT WOULD CUT 8000 JOBS OVER TWO YEARS THYSSEN STAHL AG THE BASIC STEEL DIVISION SAW AN 89 COLLAPSE IN 1992 NET INCOME WHICH FELL TO 36 MILLION MARKS 22 MILLION FROM 317 MILLION MARKS IN THE YEAR ENDED SEPT 30 1991 SALES FELL 51 TO 99 BILLION MARKS FROM 104 BILLION MARKS THYSSEN STAHL INTENDS TO SHED 8000 WORKERS ACCORDING TO DIETER HENNIG BOARD MEMBER IN CHARGE OF PERSONNEL ABOUT 3800 OF THOSE JOB CUTS WILL COME THIS YEAR PREVIOUS INDICATIONS BY THE COMPANY HAD CALLED FOR A TOTAL OF 5000 JOB CUTS MEANWHILE THYSSEN EDELSTAHLWERKE AG THE COMPANY'S SPECIALTYSTEEL DIVISION REPORTED A CATASTROPHIC QUADRUPLING OF ITS NET LOSSES WHICH SWELLED TO 354 MILLION MARKS FROM 79 MILLION MARKS SALES FELL 76 TO 307 BILLION MARKS FROM 332 BILLION MARKS SO FAR THERE ARE NO SIGNS OF RELIEF EITHER THYSSEN STAHL CHAIRMAN EKKEHARD SCHULZ SAID 1993 HAS BEEN ANYTHING BUT ROSY MARKED BY A 16 DECREASE IN SALES TO 25 BILLION MARKS IN THE FISCAL FIRST QUARTER ALSO INCOMING ORDERS CONTINUE TO FALL INDUSTRY EXPERTS SAY THAT TO READJUST FOR THE CURRENT OVERCAPACITY THE EUROPEAN STEEL BUSINESS NEEDS TO SHED MORE THAN 70000 JOBS WITHIN FIVE YEARS THE OVERCAPACITY ESTIMATED AT 30 MILLION TONS STEMS FROM WEAK INDUSTRIAL DEMAND AND IT IS AGGRAVATED BY LOWPRICED COMPETITION FROM EASTERN EUROPE SINKING PRICES AND HIGH FIXED COSTS IN THE PAST FEW MONTHS MANY MAJOR EUROPEAN STEEL MAKERS INCLUDING USINORSACILOR SA OF FRANCE BRITISH STEEL PLC AND FRIED KRUPP HOESCHKRUPP AG HAVE CUT BACK PRODUCTION AROUND 20 MR SCHULZ SAID IN THE 1993 FIRST QUARTER CRUDE STEEL PRODUCTION AT THYSSEN STAHL WAS REDUCED 25 THYSSEN'S TWO STEEL DIVISIONS WERE MERGED AS OF OCT 1 MAKING THIS THE LAST TIME THE TWO UNITS WILL REPORT RESULTS SEPARATELY THE NEW MERGED GROUP IS CALLED THYSSEN STAHL AG IN ADDITION TO THE LAYOFFS WHICH COME UNDER THE STREAMLINING EFFORT THYSSEN HAS SHORTENED SHIFTS IN JANUARY 11900 WORKERS OR AROUND 20 OF THE TOTAL WORK FORCE WERE PUT ON SHORT SHIFTS THYSSEN STAHL ALSO SAID IT WOULD TRY TO INCREASE PRICES OF CERTAIN FLAT AND LONG PRODUCTS 10 TO 15 AS OF APRIL 1 WITH A FURTHER 5 INCREASE IN JUNE ATTEMPTS LAST YEAR TO RAISE PRICES MET WITH COMPLETE FAILURE BUT THE STEEL INDUSTRY'S HOPE IS THAT WITH MANY MAJOR STEELMAKERS HAVING CUT PRODUCTION THEY MIGHT GET PRICE INCREASES TO STICK THIS TIME 9301200180 930120 TECHNOLOGY AST ESTABLISHES SINGAPORE UNIT IRVINE CALIF HOPING TO RIDE THE CREST OF A SWELLING MARKET FOR PERSONAL COMPUTER PRODUCTS IN ASIA AST RESEARCH INC SAID IT HAS ESTABLISHED A WHOLLY OWNED SUBSIDIARY IN SINGAPORE A NEW 7500SQUAREFOOT SALES AND MARKETING FACILITY WILL ENABLE AST TO DIRECTLY SUPPLY ITS PRODUCTS TO VENDORS IN THE REGION INCLUDING INDONESIA MALAYSIA AND THAILAND AST REPORTED THAT ASIAN SALES ACCOUNTED FOR 19 OF ITS WORLDWIDE REVENUE IN FISCAL 1992 AND THAT FIRSTQUARTER SALES ROSE 66 FROM A YEAR AGO 9301200179 930120 HEARD ON THE STREET CHRYSLER STOCK IS RACING BUT IS IT GOING TOO FAST BY JOHN R DORFMAN AND DOUGLAS LAVIN STAFF REPORTERS OF THE WALL STREET JOURNAL THIS IS CHRYSLER'S TIME IN THE SUN IT HAS SOME OF THE NATION'S HOTTESTSELLING CARS AND TRUCKS ITS STOCK IS EVEN HOTTER HAVING NEARLY TRIPLED LAST YEAR AND JUMPED 21 IN JUST 12 TRADING DAYS THIS YEAR SEIZING THE MOMENT CHRYSLER SOON WILL OFFER 40 MILLION NEW SHARES AT YESTERDAY'S PRICE OF 38 1/2 UP 1 CHRYSLER'S OFFERING WOULD EXCEED 15 BILLION CHRYSLER IS MOVING QUICKLY TO GET THE OFFERING TO MARKET ITS ROAD SHOW FOR PROSPECTIVE INVESTORS ALREADY HAS BEGUN AND THE OFFERING PROSPECTUS ISSUED YESTERDAY CONTAINS A BULLISH NOTE FOURTHQUARTER PROFIT FROM OPERATIONS EXCEEDED 300 MILLION A REBOUND FROM LAST YEAR'S LOSS YET SEVERAL EXPERIENCED MONEY MANAGERS AREN'T KEEN ON THE OFFERING THEY SAY CHRYSLER STOCK HAS ALREADY RUN UP SO MUCH THAT FURTHER BIG GAINS ARE A LONG SHOT SAYS DOUG RABORN OF RABORN & CO IN DELRAY BEACH FLA IT'S HAD A WONDERFUL TURNAROUND BUT I WOULD NOT BE A BUYER AT CURRENT LEVELS MR RABORN BOUGHT CHRYSLER AT 12 BUT SOLD IN THE LOW 20S THERE'S NO DOUBT THAT CHRYSLER'S TIMING IS DEFT THE AUTO MAKER IS BEGINNING TO RAKE IN PROFITS FROM ITS NEW PRODUCTS ITS LH SEDAN AND JEEP GRAND CHEROKEE ARE FLYING OUT OF THE SHOWROOMS GENERATING RICH PROFIT MARGINS A NEW PICKUP TRUCK WILL BE LAUNCHED THIS YEAR FOR THE MOMENT CHRYSLER EVEN BENEFITS FROM BEING A MAINLY DOMESTIC VEHICLE MAKER BECAUSE THE US ECONOMY IS MUCH STRONGER THAN THOSE OF EUROPE AND JAPAN NONE OF WHICH IMPRESSES VICTOR SPERANDEO PRESIDENT OF RAND MANAGEMENT CORP IN SHORT HILLS NJ THE OFFERING IS JUST TAKING THE MONEY FROM THE ANNUAL CROP OF SUCKERS HE SAYS WHAT CHRYSLER IS SAYING IS THAT IF YOU'RE WILLING TO PAY 36 OR MORE UP FROM 11 IN JANUARY LAST YEAR WE'D LIKE TO SELL YOU SOME BECAUSE IT'S OVERPRICED THEY'RE GOING TO GIVE YOU WHAT YOU WANT THE CURRENT PRODUCT BLITZ WON'T EXHAUST CHRYSLER'S STASH OF INNOVATIONS IT HAS MORE NEW VEHICLES IN THE PIPELINE BUT THEY MAY NOT BE AS PROFITABLE AS THE CURRENT CROP IN 1994 CHRYSLER WILL BE INTRODUCING A SMALL CAR THE NEON IN WHAT HAS HISTORICALLY BEEN A MONEYLOSING SEGMENT CHRYSLER HOPES TO MAKE A LITTLE MONEY BUT THE MAIN MOTIVE FOR BUILDING THE CARS IS MEETING THE FEDERAL FUELECONOMY LAW CHRYSLER HAS DEMONSTRATED AN ABILITY TO LAUNCH NEW VEHICLES QUICKLY AND WITH MINIMAL UPFRONT COSTS BUT IT STILL ISN'T THE LOWESTCOST PRODUCER ACCORDING TO THE HARBOUR REPORT A RESPECTED ANALYST OF AUTO MANUFACTURING FORD MOTOR CO'S EFFICIENT OPERATIONS GIVE IT A SAVINGS OVER CHRYSLER OF 309 A VEHICLE IN LABOR COSTS ALONE MEANWHILE PRODUCT ANALYSTS SAY THAT CHRYSLER'S STRONG NEW PRODUCTS WILL INCREASE ITS MARKET SHARE 07 OR LESS THIS YEAR TO AROUND 14 OF THE US VEHICLE MARKET THAT'S A GOOD JUMP BUT LESS THAN THE 1 INCREASE IT HAD IN 1992 IN SOME WAYS IT'S THE BLITZ OF SUCCESS CHRYSLER HAS ENJOYED RECENTLY THAT MAKES SOME MONEY MANAGERS SHY AWAY EVERYTHING'S GONE RIGHT FOR THEM LATELY SAYS DAVID DREMAN OF DREMAN VALUE MANAGEMENT IN JERSEY CITY NJ AND THAT'S NOT THE TIME I WANT TO BUY A STOCK HE PREFERS FORD AT 47 3/8 UP 3/4 YESTERDAY FORD IS RELATIVELY CHEAPER THAN CHRYSLER AT THIS POINT HE SAYS IT HAS STRONGER FINANCES AND IT IS THE LOWESTCOST PRODUCER DOMESTICALLY AT THE MOMENT HE CONCEDES FORD IS POSTING LOSSES IN EUROPE MOSTLY BRITAIN BUT MR DREMAN THINKS BRITAIN'S ECONOMY WILL IMPROVE FAIRLY SOON GIVING FORD A SIGNIFICANT BOOST W WAYNE BURGAN CHIEF INVESTMENT OFFICER OF ANALYTIC CAPITAL MANAGEMENT IN NAPLES FLA OWNS SOME GENERAL MOTORS STOCK BUT HE SAYS HE WOULDN'T BUY CHRYSLER AT TODAY'S PRICE THERE'S A WHOLE LOT OF PROFITS IN THAT STOCK THAT CAN BE TAKEN OUT IN FACT MR BURGAN SAYS HE IS CONSIDERING SHORTSELLING CHRYSLER AS WELL AS HIGHFLYING INTEL THE SEMICONDUCTOR MAKER IN SELECTED ACCOUNTS THAT PERMIT THAT TACTIC A SHORT SALE IS A BET THAT A STOCK WILL FALL SHORT SELLERS BORROW SHARES AND IMMEDIATELY SELL THEM POCKETING THE PROCEEDS EVENTUALLY THEY MUST BUY SHARES TO REPLACE THE BORROWED ONES BUT IF THE STOCK FALLS IN THE MEANTIME THEY PROFIT TO BE SURE PLENTY OF PEOPLE ARE BULLISH ON CHRYSLER CONTRARY TO THE USUAL PREOFFERING PATTERN CHRYSLER'S STOCK HAS RISEN SINCE THE OFFERING WAS ANNOUNCED JAN 11 IT WAS TRADING AT 36 1/4 THEN ONE CHRYSLER FAN IS MARK TINCHER A MONEY MANAGER WITH THE VISTA FAMILY OF MUTUAL FUNDS AT CHASE MANHATTAN WE'RE PROBABLY GOING TO BUY SOME OF THE OFFERING HE SAYS UNFORTUNATELY WE DIDN'T BUY CHRYSLER WHEN OUR MODELS TOLD US TO MR TINCHER EXPECTS CHRYSLER TO EARN 5 A SHARE BY 1994 APPLYING A PRICE/EARNINGS MULTIPLE OF NINE OR 10 TO THAT HE FIGURES THE STOCK COULD HIT 45 OR 50 HIS COLLEAGUE DAVID KLASSEN LIKES THE FACT THAT CHRYSLER HAS STARTED TO EXPORT SOME JEEPS WITH RIGHTHAND STEERING WHEELS TO JAPAN WHERE HE SUSPECTS THEY COULD BECOME A FAD HE HIMSELF IS CONSIDERING BUYING A JEEP GRAND CHEROKEE JUST YESTERDAY BEAR STEARNS PUT A BUY ON CHRYSLER AS WELL AS GM AMONG OTHER REASONS ANALYST DOUGLAS LAUGHLIN THINKS THAT COMPETITION FROM JAPAN IS STARTING TO WEAKEN BECAUSE OF THE ECONOMIC WOES THERE RONALD GLANTZ ANALYST WITH DEAN WITTER REYNOLDS RECENTLY RAISED HIS CHRYSLER EARNINGS ESTIMATE TO 435 A SHARE FOR 1993 LIKE OTHER BULLS MR GLANTZ IS EXCITED BY CHRYSLER'S NEW AND PROFITABLE PRODUCTS AND BY ITS ABILITY TO LAUNCH NEW CARS QUICKLY I THINK CHRYSLER IS GOING TO RAISE ITS DIVIDEND THIS YEAR HE SAYS THE DIVIDEND YIELD NOW IS 15 THERE'S NO WAY GM CAN RAISE ITS DIVIDEND THIS YEAR OR NEXT ADDS MR GLANTZ HE ALSO THINKS THE CLINTON ADMINISTRATION MIGHT GIVE US MAKERS OF MINIVANS AND OFFROAD VEHICLES SOME TARIFF PROTECTION CHRYSLER MAKES JEEPS AND DOMINATES THE MINIVAN SEGMENT CHRYSLER IS PRACTICING THE WILLIE SUTTON THEORY OF MANUFACTURING SAYS LEON MANDEL PUBLISHER OF AUTOWEEK MAGAZINE THEY ARE BUILDING WHERE THE MONEY IS CHRYSLER'S 300 MILLION FOURTHQUARTER PROFIT ESTIMATE DISCLOSED IN THE PROSPECTUS IS AT THE HIGH END OF ANALYSTS' ESTIMATES BUT THE FIGURE DOESN'T INCLUDE A 47 BILLION NONCASH CHARGE THAT CHRYSLER HAS SAID IT WILL RECORD EITHER IN LATE 1992 OR EARLY 1993 THIS ACCOUNTING CHARGE IS RELATED TO RETIREE HEALTH BENEFITS THE COMPANY STILL HAS A JUNKBOND CREDIT RATING STILL MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP ARE OPTIMISTIC THAT CHRYSLER'S NEW PRODUCTS WILL PRODUCE SOLID PROFITS BOTH UPGRADED CHRYSLER'S DEBT WHEN IT ANNOUNCED THE STOCK OFFERING ONE MORE ITEM TO CONSIDER IS SOME RECENT INSIDER SELLING THIRTEEN CHRYSLER OFFICERS PRESIDENT ROBERT A LUTZ FORMER CHAIRMAN LEE A IACOCCA AND 11 VICE PRESIDENTS HAVE SOLD STOCK SINCE JULY THEY BOUGHT BACK A SIMILAR NUMBER OF SHARES AT LOWER COST BY EXERCISING OPTIONS BUT ALMOST ALL OF THEM TOOK SOME CASH OUT MORE THAN 15 MILLION FOR MR LUTZ AND NONE OF THEM REINVESTED THAT CASH IN ADDITIONAL SHARES CHRYSLER BRISTLES AT ANY SUGGESTION THAT ITS OFFICERS AREN'T CONFIDENT ABOUT THE STOCK'S PERFORMANCE THEY MAINTAINED THEIR STOCK POSITION WITHIN THE COMPANY A SPOKESMAN SAYS PEOPLE HAVE PERSONAL FINANCIAL OBLIGATIONS AND MOST OF THE OPTIONS HAD BEEN UNDER WATER FOR YEARS MOREOVER HE SAYS ALL CHRYSLER OFFICERS STILL HAVE SUBSTANTIAL STOCK POSITIONS WITHIN THE COMPANY 9301200178 930120 INTERNATIONAL JAPANESE MACHINERY ORDERS FALL TOKYO MACHINERY ORDERS RECEIVED BY JAPANESE MANUFACTURERS DROPPED 21 IN NOVEMBER FROM THE YEAREARLIER MONTH BEFORE ADJUSTMENT FOR SEASONAL FACTORS THE ECONOMIC PLANNING AGENCY SAID THE PACE OF DECLINE SLOWED ONLY SLIGHTLY FROM THE 24 FALL MARKED IN OCTOBER AND REMAINED FAR SHARPER THAN THE AGENCY'S PROJECTION FOR THE OCTOBERDECEMBER QUARTER OF AN 11 FALL FROM THE YEAREARLIER TERM IN NOVEMBER THE LATEST REPORTING MONTH MACHINERY DEMAND FROM THE JAPANESE PRIVATE SECTOR INCREASED FROM OCTOBER IN RESPONSE TO THE SHARP DROP IN OCTOBER AN AGENCY OFFICIAL SAID BUT THE AGENCY IS NOT SEEING THAT THE DOWNWARD TREND HAS ENDED THE OFFICIAL SAID IN NOVEMBER OVERALL MACHINERY ORDERS TOTALED AN UNADJUSTED 1707 TRILLION YEN 1354 BILLION WHEN ADJUSTED FOR SEASONAL FACTORS THE ORDERS MARKED A 39 INCREASE FROM OCTOBER TO 1854 TRILLION YEN 9301200177 930120 INTERNATIONAL WESTPAC'S ANNUAL MEETING TURNS INTO GRIPE SESSION SYDNEY AUSTRALIA DISGRUNTLED SHAREHOLDERS TURNED WESTPAC BANKING CORP'S ANNUAL MEETING INTO A COMPLAINT MARATHON FOR NEARLY EIGHT HOURS THEY LAID INTO DIRECTORS ABOUT BIG LOSSES A FAILED RIGHTS ISSUE AND A SLUMPING SHARE PRICE JOHN UHRIG WESTPAC'S CHAIRMAN CALLED A HALT WITH MOST OF THE BUSINESS AGENDA YET TO BE CONSIDERED AND ADJOURNED THE MEETING UNTIL JAN MORE THAN 5000 SHAREHOLDERS ATTENDED ONE SHAREHOLDER WHO WASN'T THERE WAS KERRY PACKER WHO OWNS NEARLY 10 MARKET SPECULATION WAS THAT HE WOULD INSTIGATE A BOARDROOM COUP THE FIRST QUESTION FROM THE FLOOR SET THE TONE WHEN A STOCKHOLDER EXPRESSED DOUBTS ABOUT THE INTELLECTUAL ABILITY OF SEVERAL OF THE DIRECTORS TO GET THE BANK BACK ON TRACK MEANWHILE WESTPAC STOCK CONTINUED TO SINK ON THE AUSTRALIAN EXCHANGE CLOSING AT A279 US188 TUESDAY DOWN SIX AUSTRALIAN CENTS MR UHRIG TOLD SHAREHOLDERS THAT WESTPAC AUSTRALIA'S OLDEST BANK STILL HASN'T FOUND ANYONE TO TAKE THE CHIEF EXECUTIVE JOB SINCE FRANK CONROY RESIGNED THE POST IN THE WAKE OF MR PACKER'S NOVEMBER MARKET RAID 9301200175 930120 DIVIDEND NEWS MBNA CORP MBNA CORP NEWARK DEL THE BOARD OF THIS CREDITCARD BANK APPROVED A 2FOR1 SPLIT PAYABLE FEB 12 TO SHARES OF RECORD FEB 3 AND A 9 DIVIDEND BOOST ON THE POSTSPLIT SHARES TO 24 CENTS A SHARE QUARTERLY FROM 22 CENTS THE NEW DIVIDEND IS PAYABLE APRIL 1 TO SHARES OF RECORD MARCH 18 9301200174 930120 GOODYEAR'S DIRECT DEALER AKRON OHIO GOODYEAR TIRE & RUBBER CO SAID IT SIGNED DISCOUNT TIRE CO INC PHOENIX AS A DIRECT DEALER ADDING 242 OUTLETS IN 12 STATES GOODYEAR DECLINED TO DISCLOSE SALES PROJECTIONS RELATED TO THE TRANSACTION BUT IT SAID DISCOUNT TIRE REPLACED MORE THAN 500000 GOODYEAR TIRES WITH OTHER BRANDS LAST YEAR THE TIRE MAKER EXPECTS TO RECAPTURE A LARGE PORTION OF THAT MARKET 9301200173 930120 AUTOS BMW ZOOMS AHEAD OF MERCEDESBENZ IN WORLDWIDE SALES FOR THE FIRST TIME BY KRYSTAL MILLER AND TIMOTHY AEPPEL STAFF REPORTERS OF THE WALL STREET JOURNAL A LONGTIME ALSORAN HAS FINALLY OUTRACED ITS LEADING RIVAL FOR MORE THAN THREE DECADES GERMAN LUXURYCAR MAKERS BAYERISCHE MOTOREN WERKE AG AND MERCEDESBENZ AG HAVE BEEN ENGAGED IN ONE OF THE FIERCEST CORPORATE COMPETITIONS ANYWHERE ON THE GLOBE UNTIL RECENTLY MERCEDES A UNIT OF DAIMLERBENZ AG HAS SURPASSED BMW BUT LAST YEAR BMW OUTSOLD AND OUTPRODUCED MERCEDESBENZ FOR THE FIRST TIME EVER BMW'S ASSEMBLY PLANTS WORKED 30 SHIFTS OF OVERTIME TO MEET ROBUST DEMAND IN 1992 WHILE MERCEDES WAS FORCED TO EXTEND ITS HOLIDAY FACTORY SHUTDOWNS BECAUSE OF SLOW SALES THE RESULT BMW SOLD AN ESTIMATED 590000 CARS AROUND THE WORLD LAST YEAR WELL AHEAD OF MERCEDESBENZ'S ESTIMATED 530000 THE COMPANIES HAVEN'T YET TABULATED THE FINAL RESULTS IN PULLING OFF ITS COUP BMW ALSO OUTSOLD ITS RIVAL IN THE CRUCIAL US MARKET 64921 CARS TO 62832 PUBLICLY BOTH COMPANIES PLAY DOWN THE COMPETITION DECLARING THAT WHAT COUNTS IS THE QUALITY OF THEIR CARS BUT BMW'S DETHRONING OF MERCEDES CLEARLY IS SIGNIFICANT EVEN IN A WORLD WHERE JAPANESE LUXURY CARS HAVE SOMEWHAT DILUTED THE HEADTOHEAD RIVALRY OF THE TWO GERMAN CONCERNS WHEN YOU'RE IN LOS ANGELES STANDING ON SUNSET BOULEVARD IN THE END OUR COMPETITOR IS STILL MERCEDES DECLARES BMW'S CHAIRMAN EBERHARD VON KUENHEIM MERCEDES OFFICIALS MEANWHILE POINT OUT THAT BMW'S RECENT SALES SPURT IS AS ONE PUTS IT QUANTITATIVE RATHER THAN QUALITATIVE HELMUT WERNER HEAD OF MERCEDESBENZ AG TOLD A GERMAN NEWSPAPER THAT HIS COMPANY IS POSITIONED SOMEWHAT HIGHER IN THE MARKET THAN BMW AND THAT THIS HAS TO BE TAKEN INTO ACCOUNT WHEN DRAWING A CONCLUSION ABOUT WHO IS NO 1 FOR ME HE SAID SALES FIGURES ARE NOT THE ONLY MEASUREMENT BUT THAT'S THE WAY THE WORLD KEEPS SCORE IN GERMANY THE FACT THAT BMW WHICH ALMOST WENT BANKRUPT IN 1959 CAUSING THE BOARD TO CONSIDER SELLING OUT TO DAIMLERBENZ HAS OUTSOLD MERCEDES IS A JOLT MANY GERMANS VIEW THE RELATIVE DECLINE OF MERCEDES PART OF GERMANY'S LARGEST CONGLOMERATE AS A SYMBOL OF THEIR COUNTRY'S DEEPENING ECONOMIC PROBLEMS WHAT MAKES BMW'S FEAT ALL THE MORE REMARKABLE IS THAT JUST A FEW YEARS AGO THE BRAND SEEMED DESTINED FOR CONTINUING DECLINE IN THE US BMW WAS REGARDED AS THE QUINTESSENTIAL YUPPIE CAR AND ITS PROSPECTS SEEMED BLEAK WHEN '80SSTYLE CONSPICUOUS CONSUMPTION WENT OUT OF FASHION INDEED THE AUTO MAKER'S US SALES ARE OFF 329 FROM A PEAK OF 96759 IN 1986 AND BMW DOESN'T EXPECT TO RETURN TO THAT LEVEL ANY TIME SOON BUT BMW HAS MANAGED TO CHANGE WITH THE TIMES AND SAW ITS US SALES CLIMB 235 LAST YEAR THE LATEST BMW MODELS ARE LARGER AND MORE LUXURIOUS THAN THEIR PREDECESSORS BUT THEIR STYLING MAKES THEM LOOK UNDERSTATED WHEN PARKED NEXT TO COMPETING MERCEDES MODELS MANY OF WHICH ARE REGARDED AS TOO BIG AND TOO EXPENSIVE BY TODAY'S ENVIRONMENTALLY CONCERNED AND COSTCONSCIOUS BUYERS ANALYSTS SAY FOR EXAMPLE MERCEDESBENZ'S SCLASS LINE HAS BEEN MET WITH LACKLUSTER DEMAND SINCE ITS INTRODUCTION IN 1991 THE CARS RANGING IN PRICE FROM 69900 TO 119500 WERE DERIDED AS CATHEDRALS ON WHEELS BY A GERMAN AUTOENTHUSIAST MAGAZINE THE WEIGHT OF THE SCLASS CARS MADE IT DIFFICULT FOR MERCEDES TO PRODUCE AN ASSEMBLYLINE ARMORPLATED VERSION FOR GERMANY'S CHANCELLOR TO AVERT THE UNTHINKABLE CHANCELLOR HELMUT KOHL SWITCHING TO AN ARMORED BMW 7SERIES THE COMPANY RUSHED TWO HANDMADE ARMORED VERSIONS OUT OF THE FACTORY THAT SOLVED ONE HIGHLEVEL PROBLEM BUT LEFT ANOTHER FOR THE ORDINARY CONSUMER THE SCLASS MERCENDESBENZ IS STILL SO WIDE THAT IT DOESN'T FIT INTO THE RAILWAY CARS USED BY GERMAN VACATIONERS WHO TRAVEL BY TRAIN THE PROBLEM WITH THE SCLASS IS TIMING SAYS SUSAN JACOBS AN AUTO ANALYST WITH JACOBS AUTOMOTIVE IN LITTLE FALLS NJ THE SCLASS WAS DEVELOPED IN THE MIDDLE OF THE 1980S WHEN LUXURY SALES WERE BOOMING AND THERE WAS NO END IN SIGHT BY THE TIME MERCEDES INTRODUCED THE MODELS HOWEVER RECESSIONWARY CONSUMERS WERE SNUBBING SUCH LAVISH PURCHASES WITH DEMAND FALLING SHORT OF EXPECTATIONS MERCEDES HAS CUT DAILY PRODUCTION OF THE SCLASS TO 275 CARS A DAY FROM 350 DAILY THE AUTO MAKER HAS ALSO RESORTED TO GENEROUS LEASE DEALS TO SELL THE CARS STILL EDZARD REUTER CHAIRMAN OF DAIMLERBENZ AG SAYS HE IS CONFIDENT THE SCLASS WILL FIND ITS PLACE IN THE AUTOMOBILE MARKETS OF THE WORLD MR REUTER IS AN ARCHITECT OF DAIMLERBENZ'S DIVERSIFICATION INTO AEROSPACE ELECTRONICS AND FINANCIAL SERVICES A MOVE SIMILAR TO THE ONES THAT SPAWNED PROBLEMS AT DETROIT'S BIG THREE CAR COMPANIES IN THE MID1980S LIKEWISE AT DAIMLERBENZ DIVERSIFICATION APPEARS TO HAVE SAPPED CAPITAL AND DIVERTED MANAGEMENT ATTENTION FROM THE MERCEDES UNIT THE KINDEST THING YOU CAN SAY ABOUT DIVERSIFICATION IS THAT THE JURY IS STILL OUT ON IT SAYS SUSANNE OLIVER AN AUTO ANALYST AT CREDIT SUISSE FIRST BOSTON IN LONDON ONE INDICATION OF TROUBLE AT MERCEDES IS THAT THE COMPANY HAS FALLEN BEHIND BMW IN MANAGEMENT EFFICIENCY MERCEDESBENZ'S NEW PLANT IN RASTATT GERMANY FOR EXAMPLE IS DESIGNED TO BUILD 360 CARS A DAY WITH 5500 EMPLOYEES MEANWHILE BMW'S PLANNED NEW PLANT IN SOUTH CAROLINA ITS FIRST ASSEMBLY FACILITY OUTSIDE EUROPE WILL REQUIRE 2000 EMPLOYEES TO BUILD 400 CARS A DAY MERCEDES RECENTLY ANNOUNCED IT MUST CUT 11 OF ITS WORK FORCE OR 20000 EMPLOYEES TO MAKE ITSELF COMPETITIVE BMW'S RECENT SUCCESS STEMS LARGELY FROM THE 3SERIES THE AUTO MAKER'S ENTRYLEVEL LINE OF CARS BMW INTRODUCED THE MODELS IN 1991 TO ATTRACT BUYERS WHO ARE UNABLE OR UNWILLING TO SPEND MORE THAN 40000 FOR A CAR THE FIVE MODELS IN THE 3SERIES LINEUP COST BETWEEN 23710 AND 36320 AND OFFER SUCH FEATURES AS DRIVER'SSIDE AIRBAGS AND SPORTS SUSPENSION THE 3SERIES IS NOT A GLAMOROUS SHOWOFF CAR SAYS KARL GERLINGER HEAD OF BMW'S US OPERATIONS IT'S AN ELEGANT ENVIRONMENTALLY FRIENDLY CAR THAT PEOPLE CAN AFFORD LAST YEAR US SALES OF THE 3SERIES JUMPED 312 TO 38040 VEHICLES MERCEDESBENZ'S LEAST EXPENSIVE LINE OF CARS HASN'T EXPERIENCED SUCH ROBUST DEMAND THE TWO MERCEDES 190 MODELS WHICH RANGE FROM 28950 TO 34900 SAW SALES RISE 155 LAST YEAR TO 16078 CARS HOWEVER MERCEDES WILL INTRODUCE A NEW ENTRYLEVEL LINE OF CARS IN THE US IN NOVEMBER THE CCLASS THAT WILL LIKELY PROVIDE MORE FORMIDABLE COMPETITION TO THE 3SERIES STILL BMW OFFERS A BROADER RANGE OF AFFORDABLE CARS THAN MERCEDES OVERALL BMW SELLS SEVEN MODELS THAT COST LESS THAN 40000 WHILE MERCEDES OFFERS JUST TWO BMW'S MOST EXPENSIVE CAR THE 850CI SPORTS COUPE HAS A PRICE TAG OF 83400 MERCEDES' PRICIEST MODEL THE 600SEC COUPE COSTS 132000 BOTH MODELS OFFER SUCH FEATURES AS DUAL AIRBAGS AND ANTILOCK BRAKES THE 850CI IS POWERED BY A 50LITER V12 ENGINE RATED AT 296 HORSEPOWER WHILE THE 600SEC COMES WITH A 60LITER V12 ENGINE RATED AT 389 HORSEPOWER BUT THE 850CI MAY ILLUSTRATE BMW'S WEAKNESS THEY HAVEN'T BEEN ABLE TO DEVELOP PREMIUM TOPEND PRODUCTS SAYS MS JACOBS THE 850CI HASN'T FARED WELL SALES OF THE MODEL FELL 477 LAST YEAR BMW EXPECTS TO OUTSELL MERCEDES AGAIN THIS YEAR THE COMPANY MAY HAVE TO CUT PRODUCTION IF CURRENT SALES TRENDS CONTINUE SAYS CHIEF ECONOMIST HELMUT BECKER BUT MR BECKER ADDS GLEEFULLY WE'LL STILL BE AHEAD OF MERCEDES BUT BMW WILL SOON ACCELERATE THE RIVALRY BMW'S NEW ASSEMBLY PLANT IN SOUTH CAROLINA WILL BEGIN PRODUCTION IN 1995 WITH CAPACITY OF ROUGHLY 90000 CARS ANNUALLY THE PLANT WILL BUILD A YETTOBEDISCLOSED MODEL THAT WILL BE SOLD IN THE US AND AROUND THE WORLD BMW EXPECTS THE PLANT WILL HELP CUSHION IT FROM CURRENCY FLUCTUATIONS AND ALSO HELP THE AUTO MAKER BETTER UNDERSTAND AMERICAN DESIRES WITH A PLANT IN THE US SAYS MR VON KUENHEIM OUR PEOPLE WILL BE ABLE TO THINK MORE LIKE THE AMERICANS 9301200172 930120 BUSINESS BRIEF VOLKSWAGEN'S AUDI RECALLS SOME VEHICLES TO FIX OIL PROBLEM DETROIT AUDI OF AMERICA INC A UNIT OF GERMANY'S VOLKSWAGEN AG SAID IT IS RECALLING ABOUT 152000 OF ITS 1985 THROUGH 1991 MODEL CARS TO REPAIR AN OIL PROBLEM THAT COULD CAUSE THE VEHICLES' WHEELS TO LOCK THE RECALL AFFECTS 60 OF THE VEHICLES AUDI SOLD FROM 1985 TO 1991 POSSIBLY POSING ANOTHER SETBACK FOR THE LUXURY CAR MAKER AUDI'S SALES SLID SHARPLY DURING THE LATE 1980S WHEN A SAFETY SCARE SURFACED OVER UNFOUNDED CHARGES THAT SOME OF ITS VEHICLES WERE PRONE TO SUDDEN BURSTS OF ACCELERATION ITS IMAGE HAS YET TO RECOVER FROM THE CONTROVERSY AUDI SOLD 14689 VEHICLES LAST YEAR DOWN FROM A 1985 PEAK OF 74000 CARS THE COMPANY SAID IT IS AWARE OF FOUR ACCIDENTS RESULTING FROM WHEELS LOCKING WHILE A CAR WAS MOVING TWO OF THE ACCIDENTS LED TO MINOR INJURIES BUT THE AUTO MAKER SAID IT WASN'T AWARE OF ANY DEATHS RESULTING FROM THE PROBLEM THE COMPANY SAID THE PROBLEM MAY OCCUR WHEN A LUBRICANT USED FOR THE VEHICLE'S DRIVE TRAIN EVAPORATES OVER TIME CAUSING PREMATURE WEAR ON THE GEARS AND BEARINGS AUDI SAID ITS DEALERS WILL REPLACE THE LUBRICANT AT NO CHARGE THE AUTO MAKER SAID IT IS ALSO RECALLING 7000 1992 MODEL AUDI 100 VEHICLES TO ADJUST BRAKE SYSTEMS BLADES IN THE BRAKES' PEDAL ASSIST SYSTEM COULD PREMATURELY WEAR REQUIRING GREATER PRESSURE FOR BRAKING AUDI SAID IT HASN'T RECEIVED ANY REPORT OF PEDAL ASSIST FAILURE REPAIRS WILL BE MADE AT NO CHARGE 9301200171 930120 PHELPS DODGE UNIT'S PURCHASES PHOENIX ARIZ PHELPS DODGE CORP SAID ITS VENEZUELAN SUBSIDIARY ACQUIRED THREE COMPANIES IN THAT SOUTH AMERICAN COUNTRY TERMS WEREN'T DISCLOSED THE COPPER MINING COMPANY SAID ITS ALAMBRES Y CABLES VENEZOLANOS SA UNIT ACQUIRED INDUSTRIA DE CONDUCTORES ELECTRICOS CA CONDUCTORES DE ALUMINIO CA AND AISLAMIENTOS PLASTICOS CA THE THREE COMPANIES OPERATE AS A GROUP AND MANUFACTURE ELECTRICAL AND TELECOMMUNICATION WIRES AND CABLES IN VENEZUELA IN THE TRANSACTION THE PHELPS DODGE UNIT ALSO RECEIVES THE ACQUIRED COMPANIES' STAKE IN COBRE COLADA CONTINUA INCREASING ITS OWNERSHIP OF THE VENEZUELAN COPPERROD PRODUCER TO 50 FROM 25 9301200170 930119 INAUGURATION A SPECIAL REPORT THE ISSUES CEASEFIRE VIETNAM REMAINS DIVISIVE BUT THE ISSUE IS LOSING SOME OF ITS EDGE BY ROBERT S GREENBERGER THE VIETNAM WAR'S DARK SHADOW ISN'T LIKELY TO BE LIFTED SOON BY BILL CLINTON THE PRESIDENT FROM THE GENERATION MOST BITTERLY DIVIDED BY THAT CONFLICT BUT THE NEW PRESIDENT DOES HAVE AN OPPORTUNITY AT LEAST TO DECLARE A CEASEFIRE IN ANTICIPATION OF MR CLINTON'S TERM IN OFFICE THERE IS UNDISGUISED SATISFACTION IN THE VOICES OF THOSE AGING WAR PROTESTERS WHO HAIL THE ASCENDANCY OF THE FIRST CHIEF EXECUTIVE WHO RESISTED SERVING IN VIETNAM JUST AS THERE IS LINGERING RESENTMENT AMONG SOME OF THOSE WHO FOUGHT THERE VIETNAM IS AS IT HAS BEEN FOR MORE THAN A QUARTER OF A CENTURY THE DEFINING EVENT FOR MR CLINTON'S GENERATION NO CONFLICT SINCE THE CIVIL WAR SPLIT AMERICA SO WIDELY IN VIETNAM'S CASE ALONG CULTURAL RATHER THAN REGIONAL LINES BUT MR CLINTON'S ELECTION SHOWS THAT THE ISSUE IS LOSING SOME OF ITS EDGE INDEED DESPITE EFFORTS BY THE BUSH ADMINISTRATION TO DISCREDIT HIM FOR HIS ANTIWAR ACTIVITIES ONE EXIT POLL ON ELECTION DAY SHOWED THAT US VETERANS VOTED FOR MR CLINTON IN ROUGHLY THE SAME PROPORTION AS THE REST OF THE POPULATION AND THE MATURING OF THE BABYBOOM VIETNAM GENERATION COUPLED WITH THE END OF THE COLD WAR AT LAST OFFERS POSSIBILITIES TO BEGIN THE HEALING PROCESS THERE WILL ALWAYS BE DIVISIONS IN THIS COUNTRY OVER VIETNAM SAYS SEN JOHN KERRY OF MASSACHUSETTS WHO FOUGHT THERE AND THEN BECAME A NOTED WAR PROTESTER I'M CONVINCED THAT THEY CAN NEVER BE GLOSSED OVER AND WON'T BE UNTIL THIS GENERATION IS DEAD AND BURIED BUT THOSE DIFFERENCES CAN NOW BE SENSIBLY ADDRESSED MR CLINTON HAS ALREADY BEGUN THAT PROCESS HIS CALL DURING THE CAMPAIGN FOR A NATIONAL SERVICE PROGRAM MAY OFFER ONE WAY TO BRIDGE THE GAP CHARLES MOSKOS A SOCIOLOGIST OF MILITARY AFFAIRS AT NORTHWESTERN UNIVERSITY SAYS SUCH A PLAN WOULD HELP EASE THE NATION'S CONSCIENCE BY DRAWING A MORAL EQUIVALENCE BETWEEN MILITARY AND CIVILIAN SERVICE HE SAYS IT ALSO MAY FULFILL A PSYCHIC NEED FOR MR CLINTON IN LIGHT OF GEORGE BUSH'S EFFORTS TO LABEL HIM A DRAFT DODGER LAST YEAR SEN KERRY SERVED AS CHAIRMAN OF A SPECIAL SENATE COMMITTEE THAT ATTEMPTED TO ANSWER QUESTIONS ABOUT SERVICEMEN WHO WERE UNACCOUNTED FOR WHEN THE VIETNAM WAR ENDED WHILE THE PANEL DIDN'T FULLY RESOLVE THE ISSUE THE PUBLIC HEARINGS HAD A CATHARTIC EFFECT THAT HELPED THE NATION EASE ITS VIETNAM BURDEN NOW MR CLINTON CAN MOVE ON TO OTHER MEASURES SUCH AS INCREASING BENEFITS FOR VIETNAM VETERANS AND CONTINUING THE PROCESS OF NORMALIZING RELATIONS WITH VIETNAM MR CLINTON'S PRESIDENCY ALSO OFFERS HIS OWN '60S GENERATION A CHANCE TO BEGIN HEALING ITSELF WITH THEIR MASS DEMONSTRATIONS AND LOOSE LIFESTYLE THE ANTIWAR PROTESTORS ALIENATED MANY AMERICANS WHO CONSIDERED THEM UNPATRIOTIC NOW CLINTON IS PUTTING THIS GENERATION AT BAT FOR THE SECOND TIME SAYS MICHAEL LERNER A NATIONAL LEADER OF THE 1960S ANTIWAR MOVEMENT WHO IS NOW EDITOR OF TIKKUN A LIBERAL JOURNAL THIS GENERATION CUT ITS TEETH ON POLITICS WHEN IT WAS TOO YOUNG WE HAD A VISION BUT WE ARTICULATED IT WITHOUT THE KIND OF COMPASSION NECESSARY TO REACH THE AMERICAN PEOPLE YET THE NEW PRESIDENT MAY FIND THAT THE PROCESS OF RECUPERATION COULD OPEN OLD SCARS THE US DEPLOYMENT OF TROOPS TO SOMALIA INITIATES A NEW CHAPTER IN AMERICAN FOREIGN POLICYINTERVENTION FOR GENUINELY HUMANITARIAN RATHER THAN STRATEGIC REASONS MANY OF THE ANTIWAR PROTESTERS OF THE 1960S MR LERNER AMONG THEM STRONGLY SUPPORT THE USE OF US MILITARY FORCE TO PROTECT LIVES IN SUCH PLACES AS SOMALIA AND THE FORMER YUGOSLAVIA MOREOVER HUMANITARIAN INTERVENTION COULD IMPOSE SPECIAL BURDENS ON THIS PRESIDENT FOR WHOSE GENERATION THE WORDS VIETNAM AND QUAGMIRE REMAIN INEXTRICABLY LINKED CLINTON HAS TO WORRY ABOUT ANY LINGERING PROPENSITY TO PROVE HIS MANHOOD BY MOVING A LOT OF MARINES AROUND SAYS TODD GITLIN A UNIVERSITY OF CALIFORNIA BERKELEY SOCIOLOGIST WHO HAS CHRONICLED THE 1960S ALL AMERICAN WARS INCLUDING THE ONE IN VIETNAM HAVE BEEN COUCHED IN HUMANITARIAN AS WELL AS STRATEGIC TERMS BUT IN VIETNAM AS IN KOREA THINGS TURNED SOUR BECAUSE OF PROLONGED BLOODSHED AND CONFUSION ABOUT THE MISSION ALREADY THERE ARE SIGNS THAT THE US MILITARY MAY NOT BE OUT OF SOMALIA AS QUICKLY AS IT INITIALLY HOPED TO LAWRENCE LICHTY A PROFESSOR OF RADIO AND TV FILM AT NORTHWESTERN UNIVERSITY THERE IS A HAUNTING QUALITY ABOUT THE TELEVISION PICTURES OF US MARINES LANDING IN SOMALIA AND BEING GREETED BY A GRATEFUL POPULACE HE RECALLS NEWSREEL FOOTAGE OF MARINES WADING ASHORE IN DANANG VIETNAM IN MARCH 1965 AND BEING GIVEN FLOWERS BY THE CHILDREN WAITING ON THE BEACH MR CLINTON ALSO WILL HAVE TO GRAPPLE WITH ANOTHER LEGACY OF THE '60S GENERATION ALLAN MILLETT A PROFESSOR OF MILITARY HISTORY AT OHIO STATE UNIVERSITY CONTENDS THAT THE BOOMER FATHERS ARE GOING TO DISCOURAGE THEIR KIDS FROM SERVING CURRENTLY THE MILITARY DEPENDS ON VOLUNTEERS AND ITS NEEDS AREN'T GREAT BUT MR MILLETT SAYS IF WE GET INTO A SHOOTING WAR WHERE AMERICANS ARE GETTING KILLED THERE ARE GOING TO BE A LOT OF PEOPLE WHO ARE GOING TO KEEP THEIR KIDS OUT ADDING TO THE STRAIN IS THE LIKELIHOOD THAT MANY OF THEM WILL CITE THE EXAMPLE OF YOUNG BILL CLINTON EVERY CITIZEN HAS NOT JUST A RIGHT BUT THE OBLIGATION TO DECIDE FOR HIMSELF WHETHER IT'S RIGHT TO PARTICIPATE IN A PARTICULAR WAR SAYS DANIEL ELLSBERG A VIETNAM WAR PROTESTER I HOPE THAT AS PRESIDENT BILL CLINTON WILL USE THE SAME JUDGMENT IN DECIDING WHETHER IT'S RIGHT FOR US TO GO TO WAR AS HE DID AS A CITIZEN THE NOWDEFUNCT GOVERNMENT OF SOUTH VIETNAM ISSUED A CAMPAIGN MEDAL TO AMERICAN SOLDIERS WHO SERVED IN THAT CONFLICT THE MEDAL A WHITE STAR ON A GREENAND WHITESTRIPED RIBBON SHOWS THE YEAR 1960 BUT NO CLOSING DATE UNINTENTIONALLY IT HAS BECOME A FITTING SYMBOL OF THE AMERICAN WAR WITHOUT AN END MR GREENBERGER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200169 930120 TERRA TO BUY ICI CANADA PLANT SIOUX CITY IOWA TERRA INDUSTRIES INC SAID IT AGREED TO ACQUIRE ICI CANADA INC'S ANHYDROUS AMMONIA MANUFACTURING PLANT AND RELATED UPGRADING FACILITIES SITUATED NEAR SARNIA ONTARIO THE FERTILIZER CONCERN SAID THE PURCHASE WILL INCLUDE ICI'S INTEREST IN 32 CANADIAN AGROMARTS FARM SERVICE CENTERS TERRA SAID THE COMBINED 1991 SALES FROM THE OPERATIONS WAS 200 MILLION ICI CANADA IS A UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC OF LONDON THE PURCHASE IS EXPECTED TO BE COMPLETED IN THE FIRST QUARTER OF 1993 SUBJECT TO A DUE DILIGENCE INVESTIGATION AND REGULATORY APPROVAL 9301200168 930120 POLITICS & POLICY BAIRD TELLS SENATE PANEL SHE REGRETS BREAKING LAW BY HIRING ILLEGAL ALIENS BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ATTORNEY GENERALDESIGNATE ZOE BAIRD SAID SHE REGRETTED VIOLATING FEDERAL LAW BY EMPLOYING ILLEGAL IMMIGRANTS AS HOUSEHOLD HELP AND FAILING TO PAY SOCIAL SECURITY TAXES ON THEIR WAGES IN HER FIRST PUBLIC COMMENTS ON THE MATTER MS BAIRD TOLD THE SENATE JUDICIARY COMMITTEE IT WAS WRONG AND I TAKE FULL RESPONSIBILITY FOR IT SHE ADMITTED SHE KNEW AT THE TIME SHE HIRED A PERUVIAN COUPLE TO SERVE AS HER NANNY AND DRIVER THAT IT WAS ILLEGAL IT WAS A VIOLATION OF THE LAW TO HIRE UNDOCUMENTED WORKERS SHE SAID IT WAS WRONG AND I REGRET IT THE 40YEAROLD GENERAL COUNSEL FOR AETNA LIFE & CASUALTY CO IS GOING THROUGH THE TOUGHEST CONFIRMATION PROCESS OF ANY CLINTON ADMINISTRATION APPOINTEE SOME COMMITTEE MEMBERS SAID PHONE CALLS THEY ARE RECEIVING OVERWHELMINGLY OPPOSE THE NOMINATION STILL HER NOMINATION IS LIKELY TO BE APPROVED BY THE SENATE MS BAIRD WAS QUESTIONED CLOSELY BUT NOT AGGRESSIVELY BY THE PANEL WHICH FOR THE FIRST TIME HAS TWO FEMALE MEMBERS DIANNE FEINSTEIN OF CALIFORNIA AND CAROL MOSELEYBRAUN OF ILLINOIS BOTH ARE DEMOCRATS COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL POINTEDLY TOLD MS BAIRD THAT HE DID NOT CONSIDER THE HIRING OF A PERUVIAN COUPLE AND THE NONPAYMENT UNTIL THIS MONTH OF SOCIAL SECURITY TAXES MERELY TECHNICAL VIOLATIONS SEN BIDEN SAID HE WOULD HAVE OPPOSED HER HAD SHE NOT BEEN OPEN FROM THE BEGINNING ABOUT THE HIRINGS OR IF SHE HAD TRIED TO BLAME THE SITUATION ON BAD LEGAL ADVICE THIS IS A MATTER I VIEW MOST SERIOUSLY HE SAID I DO NOT SHARE THE ATTITUDE I HAVE HEARD EXPRESSED BY SOME THAT THIS VIOLATION IS UNIMPORTANT BECAUSE EVERYONE DOES IT' EVERYBODY DOES NOT DO IT IT IS NOT TECHNICAL MS BAIRD SAID SHE AND HER HUSBAND YALE LAW PROFESSOR PAUL GEWIRTZ DID NOT TRY TO CONCEAL THE UNDOCUMENTED STATUS OF THEIR WORKERS AND FILED FORMS WITH THE LABOR DEPARTMENT AND THE IMMIGRATION AND NATURALIZATION SERVICE WHICH SHE FELT GAVE TACIT APPROVAL TO THIS SITUATION AFTER SHE SAID THE PROCESS ACKNOWLEDGED THE EMPLOYEES WORKED IN HER NEW HAVEN CONN HOME WITHOUT AUTHORIZATION MR BIDEN RESPONDED IT'S AMAZING THE ABILITY OF THE HUMAN CONDITION TO RATIONALIZE TO JUSTIFY WHAT YOU KNOW IS NOT RIGHT SEN BIDEN SAID HE IS INCLINED TO CALL MR GEWIRTZ TO TESTIFY AT THE HEARING WHICH CONTINUES TOMORROW MS BAIRD SAID HER HUSBAND TALKED WITH LAWYERS WHO ADVISED THEM ON HIRING THE COUPLE AND THE NONPAYMENT OF TAXES WHILE INSISTING SHE IS NOT TRYING TO DISTANCE HERSELF FROM DECISIONS MADE ABOUT HER HOUSEHOLD HELP SHE SAID HER HUSBAND WAS RESPONSIBLE FOR A DELAY IN FILING LABOR DEPARTMENT AND INS DOCUMENTS RELATING TO THE COUPLE THE TWO WORKERS WERE HIRED IN JULY 1990 AND A DEPARTMENT CERTIFICATION THAT THE POSITION COULD BE FILLED BY A ALIEN WAS NOT REQUESTED UNTIL A YEAR LATER MS BAIRD TESTIFIED NOT UNTIL LAST OCTOBER WERE PAPERS FILED WITH THE INS TO BEGIN THE PROCESS OF OBTAINING A VISA FOR THE IMMIGRANT WORKERS TO EXPLAIN HER LACK OF ATTENTION TO LEGAL ISSUES CONCERNING HER EMPLOYEES SHE SAID I WAS ACTING MORE AS A MOTHER OF A THREEYEAROLD SON THAN SOMEONE WHO WOULD BE SEATED HERE NOMINATED AS ATTORNEY GENERAL ON JAN 5 MS BAIRD PAID 12000 IN BACK SOCIAL SECURITY TAXES INTEREST AND PENALTIES ON SATURDAY SHE PAID AN ADDITIONAL 2900 FINE FOR KNOWINGLY HIRING UNDOCUMENTED WORKERS AND FOR NOT HAVING AN INS FORM TO CERTIFY THE STATUS OF EMPLOYEES SHE SAID THE PERUVIAN COUPLE EACH WERE PAID 250 A WEEK PLUS ROOM AND BOARD THE WIFE WORKED 40 HOURS A WEEK WHILE THE HUSBAND PUT IN LESS TIME MS BAIRD SAID THE COMMITTEE ALSO WILL HEAR FROM OPPONENTS TO HER CONFIRMATION INCLUDING REPRESENTATIVES OF CONSUMER GROUPS WHO OBJECT TO POSITIONS TAKEN BY AETNA AND HER FORMER EMPLOYER GENERAL ELECTRIC CO MS BAIRD SAID SHE PROBABLY WOULDN'T PARTICIPATE IN JUSTICE DEPARTMENT DECISIONS DIRECTLY RELATING TO THOSE COMPANIES UNLESS THE DEPARTMENT'S ETHICS OFFICE APPROVES SHE ADDED THAT THE ETHICS OFFICE PROBABLY WOULD NOT FORBID HER FROM PARTICIPATING IN DECISIONS REGARDING POLICY ISSUES SUCH AS HEALTH CARE OR ANTITRUST IN WHICH THE FIRMS MAY HAVE AN INTEREST SENS HOWARD METZENBAUM D OHIO AND CHARLES GRASSLEY R IOWA QUESTIONED HER ABOUT GENERAL ELECTRIC'S EFFORT TO WEAKEN THE WHISTLEBLOWER LAW WHICH ALLOWS PRIVATE CITIZENS TO ACT IN THE NAME OF THE US TO SUE COMPANIES ACCUSED OF CHEATING THE GOVERNMENT SHE SAID SHE ENCOURAGES EMPLOYEES TO EXPOSE FRAUD THROUGH AVENUES WITHIN THE COMPANY BUT SHE ARGUED THAT THIS IS NOT INCONSISTENT WITH TAKING LEGAL ACTION AGAINST ONE'S FIRM SHE SAID HOWEVER SHE DID NOT CURRENTLY HAVE AN OPINION ON WHETHER WORKERS SHOULD BE REQUIRED TO TELL A COMPANY BEFORE FILING SUCH A SUIT A REQUIREMENT THAT CORPORATIONS FAVOR BUT THAT OTHERS FEEL WOULD DISCOURAGE WHISTLEBLOWER ACTION MS BAIRD SAID THAT BEFORE TAKING POSITIONS SHE WOULD HAVE TO STUDY SEVERAL OTHER ISSUES INCLUDING HABEAS CORPUS REFORM MANDATORY SENTENCING AND THE AUTHORITY OF FEDERAL OFFICIALS TO KIDNAP PEOPLE IN OTHER COUNTRIES AND BRING THEM TO THE US FOR TRIAL SHE DID SAY SHE IS PROCHOICE ON ABORTION AND STRONGLY FAVORS THE INDEPENDENT COUNSEL STATUTE MS BAIRD PROMISED TO GIVE HIGH PRIORITY TO PASSAGE OF A COMPREHENSIVE CRIME BILL WHICH AMONG OTHER THINGS WOULD PUT 100000 MORE POLICE ON THE STREETS INSTITUTE A WAITING PERIOD FOR PURCHASES OF GUNS INCREASE THE NUMBER OF FEDERAL CAPITAL CRIMES AND REVISE DEATHPENALTY APPEAL PROCEDURES 9301200167 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS HE'S STILL HERE ROSS PEROT LOST THE ELECTION BUT HE'S A LONG WAY FROM BEING IRRELEVANT BY TIMOTHY NOAH WHAT DOES ROSS PEROT WANT MR PEROT'S TELEPOPULIST CANDIDACY ENDED LAST NOVEMBER NO DOUBT LEADING SOME TO CONCLUDE THAT HIS WHIMS ARE NO LONGER RELEVANT TO THE NATION'S FATE BUT THE PEROT MOVEMENT AS DEFINED BY THE 19 OF THE ELECTORATE THAT CAST ITS BALLOT FOR THE INDEPENDENT CANDIDATE MAY SOON BE WIELDING MORE CLOUT THAN EVER ONE POLITICIAN STILL IMPRESSED BY MR PEROT'S GRAVITATIONAL PULL IS MARIO CUOMO DURING A TRIP TO DALLAS LAST MONTH THE NEW YORK GOVERNOR DROPPED IN ON MR PEROT TO SHARE HIS THOUGHTS ABOUT REFORMING GOVERNMENT HE IS GOING TO STAY AROUND MR CUOMO LATER TOLD REPORTERS MR PEROT ALSO MET RECENTLY WITH REPUBLICAN SENS ROBERT DOLE AND ARLEN SPECTER MR PEROT THIS MONTH BEGAN A MASSIVE PAIDMEMBERSHIP DRIVE FOR UNITED WE STAND THE VOLUNTEER ORGANIZATION THAT WITH CONSIDERABLE ENCOURAGEMENT AND FINANCIAL ASSISTANCE FROM MR PEROT DREW HIM BACK INTO THE PRESIDENTIAL RACE LAST OCTOBER HE HAS BEGUN MAKING TELEVISION APPEARANCES URGING AMERICANS TO JOIN HIS NEW GROUP AND HE HAS ALREADY TAPED AND PLANS TO RUN UP TO 28 TELEVISION COMMERCIALS THE GOAL OF ALL THESE EFFORTS IS TO REVERSE THE FLOW OF DOLLARS THAT CREATED THE PEROT MOVEMENT IN THE FIRST PLACE INSTEAD OF POURING HIS MONEY INTO THE MOVEMENT MR PEROT IS ASKING THE MOVEMENT TO POUR ITS MONEY INTO THE NEW GRASSROOTS ORGANIZATION THE VOLUNTEER GROUP THAT PUT MR PEROT ON THE BALLOT AND THEN CAMPAIGNED FURIOUSLY FOR HIM THROUGH THE FALL WILL CLEARLY NEED TO FIELD NEW MEMBERS ORSON SWINDLE THE FORMER EXECUTIVE DIRECTOR OF UNITED WE STAND HAS RELINQUISHED THAT POST TO RETURN TO HIS FAMILY IN HAWAII MOST OF THE UNITED WE STAND OFFICES AROUND THE COUNTRY HAVE BEEN CLOSED DOWN BUT MR PEROT'S ALLIES ARE CONFIDENT THAT REINFORCEMENTS ARE WAITING IN THE WINGS SINCE ELECTION DAY SAYS PEROT SPOKESWOMAN SHARON HOLMAN UNITED WE STAND HAS RECEIVED UNBELIEVABLE NUMBERS OF CALLS INCLUDING MANY FROM PEOPLE WHO COULDN'T BRING THEMSELVES TO VOTE FOR MR PEROT BUT NEVERTHELESS WANT HIS MOVEMENT TO CONTINUE MS HOLMAN ADDS THAT MR PEROT HAS RECEIVED OFFERS TO WRITE NEWSPAPER COLUMNS PLAY THE HOST ON TV SHOWS AND BECOME A RADIO COMMENTATOR AND THAT HE IS CONSIDERING ALL OF THEM VERY SERIOUSLY ONE OPTION MR PEROT HAS REJECTED AT LEAST FOR NOW IS THAT OF CREATING A THIRD MAJOR POLITICAL PARTY AFTER THE ELECTION PEROT VOLUNTEERS WERE TOLD BY MR PEROT'S PAID OPERATIVES IN DALLAS THAT FORMING A THIRD PARTY WOULDN'T BE EXPEDIENT INSTEAD THE NEW MEMBERSHIP ORGANIZATION WILL MONITOR THE PROGRESS OF THE FEDERAL GOVERNMENT UNDER PRESIDENT CLINTON IN REDUCING THE FEDERAL DEFICIT STOPPING THE REVOLVING DOOR BETWEEN GOVERNMENT AND FOREIGN LOBBYING AND ADDRESSING OTHER CONCERNS OUTLINED IN MR PEROT'S PAPERBACK MANIFESTO UNITED WE STAND IN ADDITION FOLLOWING THE ADVICE OF MR CUOMO THE GROUP MAY BECOME INVOLVED IN ISSUES FACING STATE GOVERNMENTS IN HIS DALLAS MEETING WITH MR PEROT MR CUOMO INVITED THE NEW GROUP'S MEMBERS TO JOIN HIM IN PUBLIC APPEARANCES AROUND NEW YORK STATE TO PROMOTE SUCH ISSUES AS BALLOT REFORM AND CREATION OF A STATELEVEL FREEDOM OF INFORMATION ACT FOR THE MOMENT MR PEROT ISN'T INTERESTED IN CRITICIZING MR CLINTON ACCORDING TO THOSE WHO HAVE SPOKEN WITH HIM MR PEROT DID NOT RESPOND TO REQUESTS FROM THIS NEWSPAPER FOR AN INTERVIEW IN HOLDING HIS TONGUE MR PEROT APPEARS TO BE PLACING PRUDENCE BEFORE VANITY MS HOLMAN SAYS THAT MR CLINTON HAS NOT CONTACTED MR PEROT SINCE THE ELECTION AND THAT MR PEROT WAS NOT INVITED TO PARTICIPATE IN THE CLINTON ECONOMIC SUMMIT LAST MONTH BUT ALTHOUGH MR PEROT DIDN'T ATTEND THAT SUMMIT HE WAS REPRESENTED AFTER A FASHION BY JOHN WHITE HIS FORMER ISSUES DIRECTOR AND FOR ALL PRACTICAL PURPOSES THE ARCHITECT OF HIS ECONOMIC PLAN MR WHITE TOLD THE CONFERENCE THAT FORECASTS OF THE FEDERAL DEFICIT HAD GROWN MORE DIRE SINCE LAST SUMMER WE HAVE A MORE SEVERE ILLNESS IN A WEAKENED PATIENT HE SAID WHILE THE LARGER DEFICITS MAKE IT HARDER TO SOLVE THE PROBLEM THEY IN FACT HIGHLIGHT THE IMPERATIVE OF BEGINNING TO SOLVE THIS PROBLEM NOW MR PEROT'S INFLUENCE HAS IN OTHER WAYS CLEARLY PENETRATED THE CLINTON INNER CIRCLE WHERE THE PEROT VOTE IS OFTEN CITED AS EVIDENCE THAT AMERICANS WANT AN END TO BUSINESSASUSUAL MR CLINTON'S CHOICE OF CALIFORNIA REP LEON PANETTA TO SERVE AS BUDGET DIRECTOR IS A SIGN THAT THE PRESIDENTELECT MIGHT ADDRESS THE DEFICIT ISSUE MORE AGGRESSIVELY AS PRESIDENT THAN HE EVER DID AS A CANDIDATE DURING THE ELECTION MR PANETTA LIKE MR PEROT CRITICIZED CANDIDATE CLINTON'S BUDGET ARITHMETIC AS UNREALISTIC MOREOVER IN HIS RECENT PUBLIC STATEMENTS MR CLINTON HAS BEGUN TO SOFTEN HIS CRITICISM OF MR PEROT'S MOST DARING CHALLENGE TO THE SACRIFICEAVERSE ELECTORATE A GASOLINETAX INCREASE SHORTLY BEFORE SHE WAS APPOINTED DEPUTY BUDGET DIRECTOR BY MR CLINTON ALICE RIVLIN ENDORSED THE IDEA OF A RAISING THE GASOLINE TAX BY 1 OVER FIVE YEARS AN INCREASE DOUBLE THAT PROPOSED BY MR PEROT MR PEROT IS SAID TO BE PLEASED THAT MR CLINTON'S FIRST CABINET APPOINTMENT WAS TEXAS SEN LLOYD BENTSEN TO BE TREASURY SECRETARY HE LOVES BENTSEN SAYS FORMER PEROT SPOKESMAN JAMES SQUIRES ACCORDING TO MR SQUIRES MR PEROT SAID DURING HIS CAMPAIGN THAT IF MR BENTSEN HAD BEEN ON THE DEMOCRATIC TICKET HE WOULDN'T NEED TO BE OUT THERE BUT MR BENTSEN'S PRESENCE ON THE CLINTON TEAM HARDLY GUARANTEES MR PEROT'S SILENCE IN COMING MONTHS PARTICULARLY IF THE CLINTON ADMINISTRATION FAILS TO TACKLE THE DEFICIT PROBLEM TO MR PEROT'S SATISFACTION IS IT POSSIBLE MR PEROT MIGHT TAKE THINGS ONE STEP FURTHER AND CONSIDER A RUN FOR PRESIDENT IN 1996 THERE WILL BE ANOTHER EFFORT IN 1996 SAYS A CONFIDENT JOHN JAY HOOKER FORMER PUBLISHER OF THE NASHVILLE BANNER AND A LONGTIME PEROT SUPPORTER THE QUESTION IS WHAT ROLE ROSS PEROT IS GOING TO PLAY IN THAT BUT ISN'T IT POSSIBLE TOO THAT MR PEROT AND HIS FOLLOWERS WILL BE SATISFIED WITH MR CLINTON'S PERFORMANCE IN OFFICE AND CHOOSE TO HELP REELECT HIM MR HOOKER IS DOUBTFUL IT WILL BE A LONG TIME BEFORE WE SEE ANYBODY REELECTED PRESIDENT OF THE UNITED STATES HE DECLARES GLOOMILY THE PROBLEMS ARE JUST SO ENORMOUS MR NOAH IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200166 930120 WHO'S NEWS FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON CARYL S BERNSTEIN 59 YEARS OLD EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND SECRETARY OF THIS INVESTOR IN HOME MORTGAGES HAS DECIDED TO RETIRE IN JUNE ANN D LOGAN 38 HEAD OF FANNIE MAE'S NORTHEAST REGIONAL OFFICE IN PHILADELPHIA WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER SUCCEEDING MICHAEL A SMILOW 55 WHO WILL RETIRE IN MAY SUCCESSORS FOR MS BERNSTEIN AND MS LOGAN WEREN'T NAMED 9301200165 930120 CD YIELDS MOSTLY SLID IN THE LATEST WEEK NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE MOSTLY DOWN IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS SLID TO 288 FROM 290 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS EASED TO 532 FROM 536 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS FELL TO 320 FROM 335 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD CREPT UP TO 567 FROM 566 ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND UP THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE SLIPPED TO 292 FROM 296 BANXQUOTE SAID ON FIVEYEAR JUMBOS THE AVERAGE INCHED DOWN TO 552 FROM 555 ACCORDING TO BANXQUOTE 9301200164 930120 INTERNATIONAL GM EUROPE VW POST RECORD SALES FOR 1992 DESPITE WEAK MARKET A WALL STREET JOURNAL NEWS ROUNDUP DESPITE WEAKNESS IN THE EUROPEAN CAR MARKET TWO AUTO MAKERS POSTED RECORD SALES FOR 1992 GENERAL MOTORS EUROPE SAID IT SOLD 161 MILLION OPEL AND VAUXHALL CARS LAST YEAR UP 39 FROM 155 MILLION IN 1991 THE EUROPEAN UNIT OF GENERAL MOTORS CORP OF THE US SAID 1992 MARKED ITS EIGHTH CONSECUTIVE YEAR OF RECORD SALES GM EUROPE ALSO SAID IT INCREASED MARKET SHARE OF THOSE BRANDS TO 12 FROM 116 IN THE PREVIOUS YEAR VOLKSWAGEN AG MEANWHILE SAID IT SOLD A RECORD 237 MILLION UNITS IN EUROPE IN 1992 UP 68 FROM A YEAR EARLIER VW SAID ITS MARKET SHARE ROSE TO 175 FROM 164 IN 1991 THE COMPANY SAID 1992 WAS THE EIGHTH STRAIGHT YEAR IN WHICH IT WAS THE LEADING EUROPEAN CAR MAKER VW'S AUDI UNIT SAID ITS DELIVERIES OF CARS TO CUSTOMERS ROSE 58 LAST YEAR TO 474100 UNITS AUDI SAID MOST OF THAT INCREASE CAME IN EUROPE WHERE DELIVERIES ROSE TO 183300 CARS UP 82 FROM THE PREVIOUS YEAR GM EUROPE PRESIDENT LOUIS HUGHES SAID OPEL'S STRENGTH IN EUROPE IN 1992 LARGELY REFLECTS THE STRONG POSITION ACHIEVED BY THE NEW ASTRA WHICH HAD SALES OF ALMOST 700000 LAST YEAR MR HUGHES EXPECTS GM'S SALES VOLUME TO FALL LESS THAN OVERALL EUROPEAN SALES ARE EXPECTED TO DECLINE THIS YEAR THAT WOULD BOOST GM'S MARKET SHARE IN THE SLUGGISH EUROPEAN CAR MARKET IN 1993 GM EUROPE POSTED NET INCOME OF 176 BILLION FOR 1991 WHILE THE PARENT COMPANY HAD A LOSS OF 445 BILLION 9301200163 930120 FOREST LABS' PROFIT RISES NEW YORK FOREST LABORATORIES INC A PHARMACEUTICAL MANUFACTURER AND MARKETER SAID THIRDQUARTER NET INCOME ROSE 32 ON STRONG SALES OF BRANDNAME PRODUCTS NET FOR THE QUARTER ENDED DEC 31 WAS 167 MILLION OR 37 CENTS A SHARE COMPARED WITH 127 MILLION OR 29 CENTS A SHARE IN THE YEAREARLIER PERIOD SALES INCREASED 20 TO 781 MILLION FROM 649 MILLION HOWARD SOLOMON THE COMPANY'S PRESIDENT ATTRIBUTED THE EARNINGS AND REVENUE GROWTH TO SALES GROWTH OF VARIOUS BRAND DRUGS AS WELL AS ITS GENERIC CONTROLLEDRELEASE PROPRANOLOL DRUG FOR HEART DISEASE AND HIGH BLOOD PRESSURE 9301200162 930120 CORPORATE FOCUS AHMANSON APPEARS TO BE MENDING FASTER THAN EXPECTED THRIFT OPERATOR'S STOCK JUMPS AS PROBLEM ASSETS FINALLY TURN LOWER BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL IRWINDALE CALIF HF AHMANSON INC THE NATION'S LARGEST THRIFT OPERATOR IS EMERGING FROM A HOUSING BUST FASTER AND IN BETTER SHAPE THAN PREVIOUSLY EXPECTED BREAKING A SEVENQUARTER STREAK THE THRIFT'S PROBLEM ASSETS FELL IN THE FOURTH QUARTER PARTLY BECAUSE OF AN UNUSUAL PROPERTY SALES PROGRAM AND TOUGHER HOMELOAN UNDERWRITING IMPOSED FOUR YEARS AGO IS FINALLY SHOWING UP IN FEWER POTENTIAL NEW PROBLEMS OR DELINQUENCIES COMPANY OFFICIALS WARN THAT SIGNS OF A REVIVAL ARE VULNERABLE TO THE SLACK CALIFORNIA ECONOMY AND THAT ONE QUARTER DOESN'T MAKE A TREND WE ALL LOOK FORWARD TO THE DAY WHEN FORECLOSED REAL ESTATE IS JUST A FOOTNOTE AS IT WAS IN THE THRIFT'S 1988 ANNUAL REPORT SAYS CHARLES RINEHART PRESIDENT AND CHIEF OPERATING OFFICER OF AHMANSON PARENT OF HOME SAVINGS OF AMERICA BUT THAT'S PROBABLY A COUPLE OF YEARS AWAY YET WALL STREET SENSES GATHERING MOMENTUM THE COMPANY'S STOCK HAS RISEN MORE THAN 50 SINCE LATE OCTOBER GAINING TO 2050 A SHARE IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY AMID EXPECTATIONS THAT EARNINGS WILL PICK UP THIS YEAR EVEN THOUGH FOURTHQUARTER RESULTS TO BE RELEASED TODAY WERE HURT BY LIQUIDATION PROGRAM COSTS AND RELATED LOANLOSS RESERVES FOR THE FOURTH QUARTER ANALYSTS EXPECT AHMANSON TO POST NET INCOME OF BETWEEN 6 MILLION AND 17 MILLION OR FIVE CENTS TO 15 CENTS A SHARE COMPARED WITH 64 MILLION OR 51 CENTS A SHARE A YEAR EARLIER FULLYEAR NET IS EXPECTED TO BE 182 MILLION TO 192 MILLION OR 157 TO 166 A SHARE DOWN FROM 2458 MILLION OR 206 A SHARE IN 1991 INVESTORS ARE FOCUSING NOT ON PROFIT BUT NONPERFORMING ASSETS WHICH DROPPED 12 FROM THE THIRD PERIOD TO 23 BILLION AHMANSON'S NONPERFORMERS ARE STILL ONEROUS AT 47 OF TOTAL ASSETS BUT THEIR DECLINE IF IT PERSISTS IS IMPORTANT SINCE FEWER ASSETS EARNING ZERO INTEREST LOWER RESERVE ADDITIONS AND FEWER MANAGEMENT HEADACHES CAN ACCELERATE PROFIT SHARPLY SOME ANALYSTS SAY THE COMPANY COULD EASILY PASS 2 A SHARE THIS YEAR AND REACH A SEVENYEAR HIGH OF 250 A SHARE NEXT YEAR STARTING IN '93 AHMANSON COULD HIT A BRAND NEW LEVEL OF EARNINGS PERFORMANCE SAYS GARETH PLANK WITH MABON SECURITIES CORP ADDS JONATHAN GRAY AN ANALYST WITH SANFORD C BERNSTEIN & CO THIS IS EXCITING IT'S ALMOST A CASE STUDY WHAT EXCITES MR GRAY AND OTHERS IS THE TECHNIQUE AND SPEED WITH WHICH AHMANSON IS DUMPING UNWANTED REAL ESTATE PRIMARILY SINGLEFAMILY HOMES TO BE SURE OTHER FINANCIAL INSTITUTIONS HAVE EXCELLED AT THIS GAME LIQUIDATION TEAMS AT FIRST INTERSTATE BANCORP LOS ANGELES HAVE ACHIEVED STUNNING SUCCESS IN SLASHING BAD ASSETS MAINLY COMMERCIAL PROPERTY TO 751 MILLION CURRENTLY FROM 22 BILLION IN MID1989 ONCETROUBLED COAST SAVINGS FINANCIAL INC ALSO IN LOS ANGELES BEGAN AGGRESSIVELY SELLING COMMERCIAL PROPERTY A FEW YEARS AGO STILL MANY OTHER LARGE FINANCIAL INSTITUTIONS SAT ON THEIR MISTAKES WAITING FOR A REAL ESTATE RECOVERY AHMANSON TOOK ITS MISTAKES BACK TO THE SOURCE STARTING LAST MARCH IT TOLD 800 LENDERS IN THE FIELD THAT PART OF THEIR COMPENSATION WOULD HENCEFORTH BE TIED TO THEIR SUCCESS AS LIQUIDATORS TRUE THERE IS A BIG DIFFERENCE BETWEEN SELLING A VACANT HOUSE AND SELLING HOME MORTGAGES BUT LOCAL LENDERS HAD BETTER KNOWLEDGE OF THE NEIGHBORHOODS THAN ANY SPECIALIST AT HEADQUARTERS AND COULD DRIVE HARDER BARGAINS SELLING HOUSES ONE BY ONE RATHER THAN IN BULK WHICH IS HOW THE RESOLUTION TRUST CORP THE FEDERAL THRIFT BAILOUT AGENCY DOES IT WEARING TWO HATS LOAN PERSONNEL WRITE NEW MORTGAGES AND TRACK THE SALE OF AS MANY AS 30 HOUSES LISTING AND PROMOTING THEM WITH LOCAL REALTORS WHILE ALSO ARRANGING FOR UPKEEP LIKE GRASSCUTTING AND PAINTING WHAT'S THE INCENTIVE FOR THE LOAN OFFICE MANAGER IT IS A PERCENTAGE OF OFFICE PROFITS WHICH ARE PENALIZED THE LONGER A HOUSE REMAINS UNSOLD FOR THE REALTOR IT IS THE ENTIRE 6 COMMISSION INSTEAD OF THE USUAL 3 THE THRIFT FIGURES ALL OF THIS COSTS 12 TO 13 OF THE UNPAID BALANCE ON A DELINQUENT CALIFORNIA MORTGAGE COMPARED WITH LOSSES OF 50 OR MORE THAT LENDERS ARE TAKING ON SOURED COMMERCIAL PROPERTY LOANS AHMANSON'S LOSS INDICATES FORECLOSED CALIFORNIA HOMES ARE SELLING AT A DISCOUNT OF 25 TO 35 OF THE PRICE PAID BY THE FORMER OWNERS THE PROGRAM SEEMS TO WORK IN THE FOURTH QUARTER THE THRIFT SOLD 120 MILLION IN FORECLOSED HOMES ABOUT HALF OF THAT IN DECEMBER ALONE UP FROM 15 MILLION IN DECEMBER 1991 IN CONTRAST GREAT WESTERN FINANCIAL CORP BASED IN CHATSWORTH CALIF THE NATION'S SECOND BIGGEST THRIFT SOLD 45 MILLION IN THE LATEST QUARTER AT ITS CURRENT RATE AHMANSON COULD CLEAN OUT THE EXISTING INVENTORY IN FIVE MONTHS ASSUMING THERE WEREN'T 12 BILLION MORE IN DELINQUENCIES HEADED FOR FORECLOSURE BUT THAT ISN'T AS BAD AS IT SOUNDS NOTES MR GRAY NO MORE THAN HALF OF THAT AMOUNT WILL WIND UP IN FORECLOSURE AS SOME HOMEOWNERS CATCH UP ON PAYMENTS HE SAID WHICH WOULD ADD ANOTHER 10 MONTHS TO THE LIQUIDATION PROCESS MOREOVER DELINQUENCIES OF 90 DAYS OR MORE DROPPED SIGNIFICANTLY IN DECEMBER THE FIRST TIME SINCE MID1990 THE COMPANY SAID THE PIG IS MOVING THROUGH THE SNAKE SAID A COMPANY SPOKESMAN SIGNS OF PROGRESS IN DIGESTION DERIVE MAINLY FROM TIGHTENED UNDERWRITING STANDARDS STARTING IN 1988 THE THRIFT CLAMPED DOWN ON NEW BORROWERS WHO COULDN'T AFFORD AT LEAST A 20 CASH DOWNPAYMENT AND IN 1990 HALTED LENDING BASED ON BAREBONES DOCUMENTATION RESULT THE RISKIEST MORTGAGES WITH A LOANTOVALUE RATIO EXCEEDING 80 REPRESENT 12 OF LOANS OUTSTANDING TODAY DOWN FROM 26 IN 1989 AT GREAT WESTERN THE FIGURE STILL HOVERS AT 25 STILL AT GOLDEN WEST FINANCIAL CORP OAKLAND CALIF A WELLRESPECTED BIG THRIFT SUCH LOANS ACCOUNT FOR A MERE 6 I'M IMPRESSED WITH GOLDEN WEST BECAUSE THEY NEVER HAD THESE PROBLEMS TO BEGIN WITH SURE AHMANSON IS GOING ABOUT IT IN THE RIGHT WAY BUT I WOULD HAVE BEEN IMPRESSED IF THEY HAD DECIDED TO DO THIS A YEAR OR TWO AGO SAYS JOSEPH JOLSON AN ANALYST WITH MONTGOMERY SECURITIES HE ADDED HE DOUBTS THAT THE THRIFT CAN KEEP UP THE PACE OF LIQUIDATIONS PARTICULARLY IF SOUTHERN CALIFORNIA REAL ESTATE VALUES DON'T BEGIN TO PICK UP SOON BUT CLEARLY MOMENTUM IS IN AHMANSON'S FAVOR AND ITS LEGIONS OF LOAN OFFICERS ARE BETTING THEIR PAYCHECKS THAT THEY CAN PUSH THE BAD LOANS OUT FASTER THAN THEY MADE THEM 9301200161 930120 WR GRACE FILES SUIT OVER LICENSE DISPUTE IN FLANDERS REGION BOCA RATON FLA WR GRACE & CO SAID IT FILED SUIT AGAINST BELGIUM'S REGIONAL GOVERNMENT OF FLANDERS OVER THE LOCAL GOVERNMENT'S FAILURE TO GRANT A CRITICAL LICENSE LAST YEAR THE SPECIALTYCHEMICALS CONCERN CLOSED A NEW FACTORY SOUTH OF ANTWERP AND TOOK A 140 MILLION CHARGE BECAUSE THE LICENSING DISPUTE HAD MADE THE PLANT ECONOMICALLY IMPOSSIBLE TO OPERATE THE CLOSURE WAS SPARKED BY THE FLEMISH GOVERNMENT'S REFUSAL TO ISSUE WHAT GRACE CONTENDS WAS A PROMISED PERMIT TO DISPOSE OF THE BYPRODUCTS OF THE STATEOFTHEART PLANT THE PERMIT WAS TO HAVE GONE TO A SUPPLIER OF RAW MATERIALS TO THE PLANT NOT TO GRACE A SPOKESMAN SAID THE COSTLY PLANT WHICH MADE SILICON DIOXIDE AND HYDROGEN FLUORIDE WAS STILL IN THE STARTUP STAGE WHEN THE FORCED CLOSURE OCCURRED GRACE SAID AND IT NOW ISN'T EXPECTED TO EVER OPERATE COMMERCIALLY THE SPECIALIZED NATURE OF THE PLANT MEANS IT CAN'T FEASIBLY BE CONVERTED TO ALTERNATE PRODUCTION GRACE SAID THE COMPANY SAID ITS SUIT SEEKS ABOUT FOUR BILLION BELGIAN FRANCS 120 MILLION AS WELL AS INTEREST AND YETTOBECALCULATED LOST PROFIT FLANDERS IS ONE OF THREE BELGIAN REGIONS EACH WITH ITS OWN GOVERNMENT INDEPENDENT FROM THE FEDERAL GOVERNMENT OF BELGIUM OFFICIALS OF THE FLANDERS GOVERNMENT COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9301200160 930120 WHO'S NEWS COASTAL NAMES OGLESBY TO HEAD SERVICE UNIT HOUSTON COASTAL CORP SAID IT IS FORMING ONE OF THE LARGEST DEREGULATED NATURALGAS SERVICE COMPANIES WITH ITS NEW COASTAL GAS SERVICES CO SUBSIDIARY AND NAMED CHARLES M OGLESBY AS PRESIDENT AND CHIEF EXECUTIVE OF THE UNIT MR OGLESBY 39 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT OF COASTAL'S ANR PIPELINE CO UNIT HE REMAINS A VICE PRESIDENT OF THE PARENT CONCERN AN ENERGY HOLDING COMPANY COASTAL'S NEW SUBSIDIARY WHICH THE COMPANY SAID WILL HELP MAINTAIN ITS PROFIT MARGINS IN THE RECENTLY DEREGULATED GAS DELIVERY MARKET WILL HAVE ANNUAL REVENUE OF ABOUT 16 BILLION AND WILL HANDLE ABOUT 5 TO 8 OF THE US'S ANNUAL CONSUMPTION OF 21 TRILLION CUBIC FEET OF NATURAL GAS THE NEW UNIT'S SERVICES INCLUDE COASTAL'S NATURALGAS GATHERING NEAR PRODUCTION SITES PROCESSING AND MARKETING TO UTILITIES AND OTHER CUSTOMERS AS WELL AS DOMESTIC NATURALGAS PIPELINE DEVELOPMENT AND INTERNATIONAL DELIVERY SERVICES THE UNIT ALSO WILL CONSULT WITH CUSTOMERS ON THE AMOUNT OF GAS THEY NEED UNDER NEW FEDERAL RULES THAT LEAVE ADEQUATE SUPPLY RESPONSIBILITY LARGELY TO CUSTOMERS 9301200159 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS WARM BUT FUZZY IN MANY WAYS BILL CLINTON REMAINS WHAT HE WAS MONTHS AGO AN ENIGMA BY JEFFREY H BIRNBAUM IN THE WEEKS SINCE HIS VICTORY LAST NOVEMBER 3 BILL CLINTON HAS BEEN A REMARKABLE CONTRADICTION HE HAS DAZZLED EVEN HIS OPPONENTS WITH HIS INTELLIGENCE AND COMPREHENSION OF POLICY BUT HE HAS GIVEN LITTLE INDICATION ABOUT WHAT HE'S GOING TO USE THAT DEPTH OF UNDERSTANDING TO TRY TO ACCOMPLISH HIS SUPPORTERS SAY THIS SHOWS MR CLINTON'S WISDOM THE AMERICAN PEOPLE NEED TO HAVE THEIR PROBLEMS COMMUNICATED TO THEM IN THE CLEAREST AND SIMPLEST WAY LONG BEFORE THEY CAN CONFRONT HARD CHOICES WHAT MR CLINTON HAS DONE SINCE THE ELECTION THEY CONTEND IS MOVE SLOWLY LIKE A DISCIPLINED TEACHER TO PAVE THE WAY FOR THE REAL PROGRESS TO COME IN THE MONTHS AND YEARS AHEAD CRITICS TAKE A DIFFERENT VIEW THEY WONDER WHETHER MR CLINTON STANDS FOR ANYTHING OTHER THAN MAKING FRIENDS HIS EXTRAORDINARY FACILITY WITH DETAIL IS USED THEY SAY TO CONVINCE EVEN HIS ENEMIES THAT HE SOMEHOW ACTUALLY AGREES WITH THEM HOWEVER THEIR ARGUMENT GOES THE ONLY SOLUTIONS HE WILL ADVOCATE ARE ONES THAT MANAGE TO SATISFY ALMOST EVERYONE A PRESCRIPTION FOR HALFMEASURES AT BEST IN THE END THEN MR CLINTON ENTERS HIS PRESIDENCY WITH AN IMPORTANT QUESTION RAISED BUT UNANSWERED IS HE A VISIONARY FOR CHANGE OR JUST ANOTHER POLITICIAN CLINTON CLEARLY GRASPS THE NATURE OF THE PROBLEMS THAT HE AND THE COUNTRY CONFRONT SAYS THOMAS MANN A LEADING SCHOLAR OF GOVERNMENT AT THE BROOKINGS INSTITUTION THE ONLY QUESTION IS WILL HE MAKE WISE CHOICES AND WILL HE MAKE DECISIONS OR WILL HE TRY TO AVOID DECISIONS SINCE THE ELECTION ALMOST NO ONE HAS COME AWAY UNIMPRESSED BY MR CLINTON'S FUNDAMENTAL SKILLS IN BOTH POLITICS AND POLICY EVEN BURTON PINES CHAIRMAN OF THE NATIONAL CENTER FOR PUBLIC POLICY RESEARCH A CONSERVATIVE THINK TANK SAYS HE HAS GIVEN MR CLINTON AN APLUS INDEED THE PRESIDENTELECT HAS EARNED HIGH MARKS FROM THE VERY FIRST MOMENT HE CAME TO WASHINGTON AFTER HIS VICTORY HE DIDN'T JUST VISIT THE ESTABLISHED POWERS PRESIDENT BUSH AND THE MEMBERS OF CONGRESS HE WAS ALSO CAREFUL TO STAGE A TELEVISED WALK ALONG A CITY STREET AND TO STOP DURING HIS MORNING JOG AT A LOCAL MCDONALD'S RESTAURANT MEETING AND MINGLING WITH AVERAGE FOLKS IS CLEARLY A SIGNATURE ACT OF THE NEW PRESIDENT AND NOT AN AFFECTATION FOR ELECTION TIME ONLY MR CLINTON TOOK THIS PENCHANT FOR LISTENING TO NEW HEIGHTS AND LENGTHS BY SITTING FOR 18 GRUELING HOURS AS HE ENTERTAINED THE ASSESSMENTS AND SUGGESTIONS OF DOZENS OF PEOPLE DURING HIS ECONOMIC CONFERENCE LAST MONTH IN LITTLE ROCK ARK FOR EVERY COMMENT NO MATTER HOW OBSCURE HE HAD ONE OF HIS OWN AND HE MANAGED TO PROVE HIS MASTERY OF ISSUES RANGING FROM ENERGY TAXES TO WELFARE REFORM HIS POLITICAL SKILLS HAVE PERHAPS BEEN SHARPEST DURING HIS ELABORATE COURTSHIP OF AN INSTITUTION THAT FOR POLITICAL REASONS HE HAD ONLY RECENTLY REVILED THE CONGRESS IN THE PAST 2 1/2 MONTHS HE HAS MET REPEATEDLY WITH BOTH ITS LEADERS AND ITS RANKANDFILE MEMBERS AND HE HAS LEFT HARDLY A SINGLE ONE OF THEM WITHOUT A POSITIVE IMPRESSION HE HAS TAKEN PAINS TO HEAR EACH OF THEIR PET PROPOSALS HE HAS DUTIFULLY TAKEN NOTES AND HE HAS PROMISED CLOSE CONSULTATIONS INCLUDING MANY LATENIGHT CHATS AT THE WHITE HOUSE HE TURNED IN HIS MOST AMAZING PERFORMANCE WITH CONGRESS AT AN EARLYMORNING MEETING WITH THE ENTIRE DEMOCRATIC CAUCUS OF THE HOUSE DURING HIS SECOND POSTELECTION VISIT TO THE CAPITOL LAWMAKERS ARE STILL SHAKING THEIR HEADS OVER HOW HE STOOD IN THE WELL OF THE HOUSE AND CALLED ON EVEN FRESHMAN MEMBERS BY THEIR FIRST NAMES HE ALSO WAS ABLE TO DISCOURSE WITH PRECISION AND LUCIDITY ON TOPICS THAT RANGED FROM URBAN VIOLENCE TO SOMETHING CALLED THE BASEL ACCORDS WHICH ARE IMPORTANT TO INTERNATIONAL BANKERS AND HARDLY ANYBODY ELSE I WAS JUST FLOORED SAYS DEMOCRATIC REP CHARLES SCHUMER OF NEW YORK WHO ACTUALLY KNOWS SOMETHING ABOUT THE BASEL ACCORDS FOR 12 YEARS I'VE BEEN WORKING WITH PRESIDENTS WHO EITHER WORK FROM FILE CARDS OR DIDN'T CARE ADDS MR MANN OF THE BROOKINGS INSTITUTION I COME AWAY FROM THIS PERIOD REINFORCED IN THE VIEW THAT HE'S THE FIRST NATIONAL POLITICIAN IN DECADES WHO COMBINES SUBSTANTIVE KNOWLEDGE AND POLITICAL SKILLS AND BOTH HAVE BEEN IN FULL EVIDENCE IN THE WEEKS SINCE THE ELECTION AT THE SAME TIME HOWEVER MR CLINTON HASN'T YET PUSHED HIMSELF TO DEAL SQUARELY WITH MANY OF THE DILEMMAS AND DIFFICULTIES HE SO OBVIOUSLY UNDERSTANDS THERE IS NO BETTER PROOF OF THAT THAN HIS ACTIONS AT THE ECONOMIC CONFERENCE ALTHOUGH HE SPENT HOUR UPON HOUR TALKING ABOUT PROBLEMS IN THE NATION'S ECONOMY HE WAS ABLE TO AVOID MAKING EVEN A SINGLE COMMENT THAT COULD BE CONSTRUED AS A NEWSWORTHY NUGGET ABOUT WHAT HE MIGHT PROPOSE IN ORDER TO SOLVE THEM SIMILARLY MANY OF HIS CABINET SELECTIONS SAY MORE ABOUT HIS ABILITY TO BALANCE INTEREST GROUPS AND TAKE CARE OF POLITICAL ALLIES THAN ABOUT HIS PLANS FOR GOVERNING PARTICULARLY IN THE REALM OF ECONOMICS HE HAS PICKED TWO CLOSE POLITICAL ALLIES RONALD BROWN FOR COMMERCE SECRETARY AND MICKEY KANTOR FOR US TRADE REPRESENTATIVE RATHER THAN PEOPLE ASSOCIATED WITH ONE ECONOMIC PHILOSOPHY OR ANOTHER AND BY CHOOSING FOR OTHER TOP CABINET POSTS FOUR MEMBERS OF CONGRESS WITH DIVERSE BACKGROUNDS MR CLINTON HAS SIGNALED THAT HE INTENDS TO WORK WELL WITH CONGRESS WITHOUT REVEALING PRECISELY WHAT IT IS HE INTENDS TO WORK WELL AT THE CABINET PICKS ARE SHOWING US THAT THIS PRESIDENT LIKE THE OTHERS BEFORE HIM REALLY DIDN'T HAVE A VERY GOOD IDEA WHAT WAS AHEAD OF HIM BEFORE HE WON CONCLUDES FORMER REPUBLICAN REP BILL FRENZEL OF MINNESOTA IN THE FEW AREAS IN WHICH MR CLINTON HAS ALLOWED HIMSELF TO GO OUT ON A LIMB HE HAS BEEN CAREFUL NOT TO MOVE TOO FAR OR HAS CHOSEN TO RETREAT WHEN HE GOT TOO CLOSE TO THE EDGE AT FIRST HE SAID HE WOULD PRESS TO GIVE GAY PERSONNEL THE FULL RUN OF THE MILITARY UNDER PRESSURE HE SAID HE WOULD STUDY THE ISSUE HE RAN ON A PLATFORM THAT CALLED FOR THE LINEITEM VETO BUT WHEN FACED WITH CONGRESSIONAL OPPOSITION HE SAID HE WOULD BE GLAD TO WATER DOWN HIS PLAN HE ADMONISHED WOMEN'S GROUPS FOR PRESSURING HIM TO PUT MORE WOMEN IN THE CABINET BUT IN THE END HE PLEASED THEM BY NAMING MORE WOMEN THAN ANY OF HIS PREDECESSORS SUCH EFFORTS TO APPEASE CAN MASK DISAGREEMENTS FOR ONLY SO LONG BENEATH THE SURFACE CLINTON AIDES ALREADY ARE WARRING OVER MYRIAD DECISIONS WHETHER HE SHOULD WIDEN OR NARROW THE BUDGET DEFICIT IN THE SHORT RUN FOR THE SAKE OF ECONOMIC GROWTH WHETHER HE SHOULD MANAGE TRADE MORE CLOSELY OR LOOSEN CONTROLS ON IT HOW RAPIDLY HE SHOULD DISMANTLE THE MILITARY AND WHAT PARTS HE SHOULD KEEP HOW BROAD A REVISION OF HEALTHCARE LAWS HE SHOULD ATTEMPT EACH OF THESE CHOICES WILL HAVE CONSEQUENCES AND INEVITABLY CREATE ENEMIES FOR MR CLINTON A CRUCIAL TEST OF HIS PRESIDENCY WILL BE HIS READINESS TO DO WHAT OUTSIDE OF A PURELY ELECTORAL SETTING HE HAS SO FAR REFRAINED FROM DOING NAMING HIS ADVERSARIES AND MOUNTING A CAMPAIGN TO DEFEAT THEM MR BIRNBAUM IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200158 930120 ANADARKO PARTNER DISCOVERS GAS HOUSTON ANADARKO PETROLEUM CORP AND ITS PARTNER A UNIT OF FINA INC DISCOVERED NATURAL GAS IN SOUTHEAST TEXAS THE GAS DISCOVERY WELL LOCATED IN JACKSON COUNTY TESTED 51 MILLION CUBIC FEET OF GAS AND 174 BARRELS OF CONDENSATE OR OILLIKE HYDROCARBON THROUGH A 16/64INCH CHOKE THE OIL AND GAS EXPLORATION AND PRODUCTION COMPANY SAID THAT IT OWNS A 475 WORKING INTEREST AND THAT FINA THE OPERATOR OWNS 34 A GROUP LED BY YUMA PETROLEUM CORP OWNS THE REMAINING 185 9301200157 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS QUIET CLOUT AL GORE ADAPTS TO LIFE AS NO 2 BY MICHAEL K FRISBY SEEKING TO DEFINE HIS ROLE IN JIMMY CARTER'S ADMINISTRATION WALTER MONDALE SENT A MEMO TO THE NEW PRESIDENT AFTER THE 1976 ELECTION I FULLY REALIZE HE WROTE THAT MY PERSONAL AND POLITICAL SUCCESS IS TOTALLY TIED TO YOURS AND THE ACHIEVEMENTS OF YOUR ADMINISTRATION IT IS A MESSAGE THAT ALBERT GORE JR WHO RECEIVED HIS OWN COPY OF THE MEMO FROM MR MONDALE HAS CLEARLY TAKEN TO HEART THE LINE ON MR GORE HAS ALWAYS BEEN THAT HE WAS RAISED TO BE PRESIDENT THE PRIVILEGED SON OF A TENNESSEE SENATOR PRINCE ALBERT ROAMED WASHINGTON'S CORRIDORS OF POWER AS A CHILD BUT IN THE SIX MONTHS SINCE BILL CLINTON CHOSE HIM TO BE HIS VICEPRESIDENTIAL RUNNING MATE AND ESPECIALLY IN THE 11 WEEKS SINCE THE ELECTION MR GORE HAS HAD TO ADJUST TO A VERY DIFFERENT POSITION SECOND BANANA I CAN IMAGINE THERE ARE THOSE WHO THINK THIS WOULD BE EXTREMELY DIFFICULT FOR SOMEONE AS AGGRESSIVE AS SEN GORE HAS BEEN ACKNOWLEDGES ROY NEEL MR GORE'S TOP AIDE HOWEVER MR NEEL ADDS HE HAS REDIRECTED HIS ENERGY AND IT HAS GONE SMOOTHLY MR GORE HAS DONE THIS IN PART NOT BY SUBMERGING HIMSELF BUT BY ASSERTING HIMSELF CAREFULLY AND HE IS FINDING THAT HIS NEW BOSS LIKES IT THAT WAY MR GORE HAS PROVED THAT HE CAN PLAY MR CLINTON'S FAVORED GAME OF PROGRAMMED CONFRONTATION INTENSE CONVERSATION AND EVEN ARGUMENT AT TIMES TO DISPLAY THAT HIS COUNSEL IS WORTHWHILE WHEN THE NEW PRESIDENT AND VICE PRESIDENT MEET THEY GET RIGHT DOWN TO IT MR NEEL SAYS I'VE BEEN IN ON SOME CONVERSATIONS WHERE IF IT HAD BEEN TWO OTHER PEOPLE TALKING I WOULD HAVE WANTED TO HAVE BEEN UNDER THE TABLE CRINGING IN FEAR THAT SOMEONE WAS GOING TO THROW SOMETHING ACROSS THE ROOM AND THE UPSHOT OF ALL THIS WE'VE DONE EVERYTHING WE'VE DONE BY CONSENSUS IN HERE MR CLINTON SAID IN AN INTERVIEW LAST MONTH WITH THE WALL STREET JOURNAL HE'S DISCUSSED EVERY CABINET APPOINTMENT WITH ME WE'VE GONE OVER ALL OF THESE DEPARTMENTS WE'VE DONE A LOT TOGETHER HE'S REVIEWED ALL OF THE MATERIALS I'VE REVIEWED BY ALL ACCOUNTS THEN MR GORE HAS SO FAR DONE WELL AT CARVING OUT A ROLE FOR HIMSELF AND QUIETLY BUILDING CLOUT BUT SUSTAINING THAT INFLUENCE WILL GROW TOUGHER ONCE THE COMPETITION FOR PRESIDENT CLINTON'S ATTENTION EXPANDS BEYOND TRANSITION FIGURES TO INCLUDE CONGRESSIONAL LEADERS INTEREST GROUPS AND A CABINET THAT HAS GAINED ITS FOOTING MOST OF ALL MR GORE MUST NOW BE CAREFUL NOT TO CROSS HILLARY CLINTON OR THOSE IN THE FOB CROWD THE FRIENDS OF BILL WHO MAY WANT HIM RELEGATED TO THE USUAL VICEPRESIDENTIAL NONROLE SO FAR MR GORE SEEMS UP TO THE TASK THOMAS MACK MCLARTY WHO WILL SERVE AS WHITE HOUSE CHIEF OF STAFF PRIVATELY RAVES ABOUT HOW HELPFUL MR GORE HAS BEEN AND ABOUT HOW MUCH HE LIKES THE NEW VICE PRESIDENT PERSONALLY MOST IMPORTANT MR GORE HAS TAKEN PAINS TO TEND HIS RELATIONSHIP WITH MRS CLINTON DURING THE CAMPAIGN SHE WAS REPORTED TO HAVE BEEN ANGERED BY MR GORE'S FAILURE TO DEFEND HER HUSBAND VIGOROUSLY DURING THE VICEPRESIDENTIAL DEBATE THESE DAYS INSIDERS SAY MR GORE FREQUENTLY LETS IT BE KNOWN THAT HE HAS CONFERRED WITH MRS CLINTON BY DROPPING THE PHRASE I'VE TALKED WITH HILLARY ABOUT THIS IN CONVERSATION A FEW YEARS AGO A SELFEFFACING AL GORE WOULD HAVE BEEN INCONCEIVABLE HIS 1988 CAMPAIGN FOR PRESIDENT HAD CONFIRMED IN SOME MINDS AN IMAGE OF HIM AS ALOOF AND STUFFY SOME OF HIS SENATE COLLEAGUES PRIVATELY BRIDLE AT WHAT THEY REGARDED AS THE NAKEDNESS OF HIS AMBITION HE WASN'T AMONG THE MOST POPULAR MEMBERS OF THE CHAMBER AND SOME SUGGEST THAT MR CLINTON WOULD BE MAKING A MISTAKE TO TRY TO TURN MR GORE INTO HIS POINT MAN FOR CONGRESSIONAL RELATIONS BUT THE EVIDENCE OF THE PAST FEW MONTHS INDICATES THAT IF MR GORE HASN'T EXACTLY UNDERGONE A PERSONALITY TRANSPLANT HE AT LEAST IS SMART ENOUGH TO KNOW WHAT HE HAS TO DO TO GET ALONG WITH THE ADMINISTRATION'S POWER CENTERS AND IS DISCIPLINED ENOUGH TO DO IT IN PREPARING FOR HIS NEW JOB MR GORE HAS SOUGHT OUT PREVIOUS OCCUPANTS OF THE OFFICE AND HE HAS CHATTED WITH MR MONDALE AND DAN QUAYLE MR MONDALE ESPECIALLY MAY BE SOMETHING OF A ROLE MODEL IN THAT HE WAS ABLE TO BE A QUIET SENIOR ADVISER TO PRESIDENT CARTER AND AT THE SAME TIME MAINTAIN A PUBLIC PROFILE MR GORE EXPECTS TO KEEP ENERGETIC TRAVEL SPEAKING AND POLITICAL SCHEDULES IT WOULD BE A WASTE OF AL GORE AS A RESOURCE IF HE DIDN'T SAYS MR NEEL ADDING THAT MR GORE'S WILL BE A MAJOR VOICE IN MATTERS OF ENVIRONMENTAL AND TECHNOLOGY POLICY THE NEW VICE PRESIDENT WILL LIKELY SEEK WITH MR CLINTON MANY OF THE ARRANGEMENTS THAT MR MONDALE IN HIS MEMO SOUGHT FROM MR CARTER REGULAR ACCESS INTELLIGENCE BRIEFINGS AN UNDERSTANDING OF HIS IMPORTANCE TO THE WHITE HOUSE STAFF PARTICIPATION IN MEETINGS WITH THE NATIONAL SECURITY COUNCIL AS WELL AS DOMESTIC AND ECONOMIC PANELS AND A STAFF REPRESENTATIVE ON THE NSC AND OTHER KEY GROUPS THERE IS AT LEAST THE POTENTIAL FOR MR GORE TO BE EVEN MORE EFFECTIVE THAN MR MONDALE WAS WHILE PRESIDENT CARTER CEDED AUTHORITY TO CABINET SECRETARIES AND DIMINISHED THE WHITE HOUSE'S INFLUENCE MR CLINTON'S WHITE HOUSE WILL RUN THE GOVERNMENT AND MR GORE ANTICIPATES BEING IN THE THICK OF THE DECISIONMAKING PROCESS MR CLINTON HIMSELF SAYS HE EXPECTS AS MUCH IN THE JOURNAL INTERVIEW LAST MONTH HE STRESSED MR GORE'S ROLE IN HELPING TO SHAPE THE NEW ADMINISTRATION FOR EXAMPLE THE NEW VICE PRESIDENT WAS INSTRUMENTAL IN THE SELECTION OF HIS FORMER AIDE CAROL BROWNER TO BE THE ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY MR GORE TOLD MR CLINTON HER NAME SHOULD BE ADDED TO THE LIST OF CANDIDATES TO HEAD THE AGENCY AND ARGUED HER QUALIFICATIONS MR CLINTON WAS SO IMPRESSED WITH HER PERFORMANCE WHEN HE INTERVIEWED HER THAT SHE WON THE JOB DESPITE MR CLINTON'S ORIGINAL INCLINATION TO APPOINT MADELINE KUNIN THE FORMER VERMONT GOVERNOR WHO HAD SERVED HIM WELL DURING THE VICEPRESIDENTIAL SEARCH AND THE TRANSITION MR GORE ALSO WENT TO BAT FOR JACK GIBBONS WHO WAS APPOINTED SCIENCE ADVISER MR CLINTON HAS ALSO GIVEN SOME INDICATIONS AS TO HOW MR GORE WILL BE USED IN OFFICE FOR INSTANCE MR GORE WILL ORGANIZE A TIMBER SUMMIT TO HELP MEDIATE THE LONGSTANDING DISPUTE BETWEEN THE LOGGING INDUSTRY AND ENVIRONMENTALISTS IN THE PACIFIC NORTHWEST HE ALSO EXPECTS TO SERVE AS A GENERAL ADVISER HEADING TASK FORCES ON CERTAIN ISSUES AND TO HAVE SPECIAL INFLUENCE OVER ADMINISTRATION SCIENCE AND TECHNOLOGY POLICIES MR GORE IS ALSO LIKELY TO WEIGH IN ON SUCH FOREIGNPOLICY MATTERS AS THE MIDDLE EAST HE WAS ONE OF ONLY A HANDFUL OF SENATE DEMOCRATS TO VOTE IN FAVOR OF THE PERSIAN GULF WAR AND ARMS CONTROL HE WAS A MEMBER OF THE ARMED SERVICES COMMITTEE SKEPTICS WILL CONTINUE TO SEARCH FOR TELLTALE SIGNS THAT MR GORE'S HEALTHY EGO CAN'T TAKE THE PUNISHMENT OF BEING NO 2 YET NO SUCH SIGNS HAVE SURFACED BEHIND THE SMILES OF MR GORE HIS WIFE TIPPER AND THEIR FAMILY AL IS SO HAPPY WITH THE WAY THAT THIS YEAR HAS GONE AND WITH HIS FAMILY SAYS DEMOCRATIC POLITICAL STRATEGIST MARK SIEGEL THAT I DON'T THINK HE COULD HAVE DREAMED A BETTER OUTCOME MR FRISBY IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200156 930120 INTERNATIONAL GERMAN ECONOMIC PROPOSAL CUTS BENEFITS FIRST CREATES TAXES LATER BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN FACED WITH A DEEPENING RECESSION AND SOARING BILLS FOR REBUILDING EASTERN GERMANY THE BONN GOVERNMENT UNVEILED AN ECONOMIC PLAN THAT ENVISIONS NEW TAXES AFTER 1995 AND DEEP CUTS IN ONCESACRED SOCIAL PROGRAMS THE PACKAGE IS BUILT ON THE ASSUMPTION THE FEDERAL DEFICIT WILL SWELL TO 53 BILLION MARKS 3244 BILLION THIS YEAR AS RECENTLY AS LAST SUMMER THE ESTIMATE WAS 38 BILLION MARKS CHANCELLOR HELMUT KOHL SEES THE CUTBACKS AS PART OF A LOFTY SOLIDARITY PACT A BROAD AGREEMENT ON ECONOMIC PRIORITIES THE GERMAN LEADER WANTS TO FORGE WITH LABOR UNIONS AND BUSINESS LEADERS UNDER SUCH A PACT THE BURDENS OF GERMANY'S ECONOMIC PROBLEMS WOULD BE SHOULDERED EVENLY BY ALL PARTS OF SOCIETY THE IDEA IS PATTERNED AFTER A PACT FORGED AFTER WORLD WAR II LAYING THE GROUNDWORK FOR GERMANY'S ECONOMIC MIRACLE BUT WHETHER MR KOHL CAN PUSH THROUGH THE GRAND SAVINGS PLAN IS UNCLEAR CRITICS SAY THEY DON'T SEE EQUALITY IN IT THE SAVINGS PLAN CALLS FOR CUTTING UNEMPLOYMENT BENEFITS FAMILY SUBSIDIES AND OTHER TYPES OF WELFARE PAYMENTS IMMEDIATELY WHILE HIGHER INCOME TAXES FOR TOP WAGEEARNERS WOULD START IN 1995 MEMBERS OF THE OPPOSITION SOCIAL DEMOCRATS CALLED THE PROPOSAL A PROVOCATION THIS GOVERNMENT ISN'T INTERESTED IN COOPERATION SAID BJOERN ENGHOLM THE LEADER OF THE LEFTIST PARTY UNIONS TOO ARE LIKELY TO OBJECT MR KOHL ALSO ANNOUNCED A LONGAWAITED CABINET REVAMP HE CONFIRMED THAT GUENTER REXRODT A BOARD MEMBER AT THE TREUHANDANSTALT PRIVATIZATION AGENCY WOULD SUCCEED JUERGEN MOELLEMANN AS ECONOMICS MINISTER MR MOELLEMANN RESIGNED THIS MONTH IN THE WAKE OF AN INFLUENCEPEDDLING SCANDAL WOLFGANG BOETSCH WAS NAMED POST AND TELECOMMUNICATIONS MINISTER SUCCEEDING CHRISTIAN SCHWARZSCHILLING WHO RESIGNED IN DECEMBER AFTER SAYING MR KOHL'S GOVERNMENT WAS INCOMPETENT THE TWO OTHER NEWCOMERS TO THE CABINET ARE MATTHIAS WISSMANN WHO WILL SUCCEED HEINZ RIESENHUBER AS RESEARCH MINISTER AND JOCHEN BORCHERT WHO IS REPLACING IGNAZ KIECHLE AS AGRICULTURE MINISTER MEANWHILE THE ECONOMICS MINISTRY RATCHETED DOWN ITS ECONOMIC FORECASTS FOR THE COMING YEAR PREDICTING WESTERN GERMANY'S GROSS DOMESTIC PRODUCT WOULD CONTRACT AS MUCH AS 1 IN 1993 WHILE EASTERN GERMANY'S ECONOMY WOULD EXPAND 5 TO 7 THAT WOULD LEAVE THE PANGERMAN GDP FIGURE STAGNATING FOR THE YEAR LAST YEAR WESTERN GERMANY'S GDP GREW 15 AND EASTERN GERMANY'S GDP JUMPED BY 61LEAVING THE COUNTRY WITH AN OVERALL GDP GROWTH RATE OF 19 AMONG THE PROBLEMS NOW CONFRONTING WESTERN GERMANY THE MINISTRY SAID IS A MASSIVE DECLINE IN INDUSTRIAL OUTPUT AND A DROP IN EXPORTS AS A RESULT WESTERN GERMAN GDP DROPPED ABOUT 1 IN THE FINAL MONTHS OF LAST YEAR 9301200155 930120 AIWA AMERICA SEES SALES RISING MAHWAH NJ AIWA AMERICA INC EXPECTS SALES TO RISE 40 FOR FISCAL YEAR 1992 DUE TO STRONG GROWTH OF THE COMPANY'S COMPACT STEREO AND VCR LINES THE FISCAL YEAR ENDS MARCH 1993 IN ADDITION THE SONY CORP UNIT SAID IT EXPECTS SALES WILL GROW 30 FOR THE FIRST HALF OF CALENDAR 1993 AIWA DECLINED TO DISCLOSE ACTUAL SALES TOTALS AIWA MANUFACTURES HOME AND CAR AUDIO SYSTEMS AND VIDEO COMPONENTS 9301200154 930120 INAUGURATION A SPECIAL REPORT THE ISSUES POSTMORTEM NOV 6 1996 CLINTON FAILS IN REELECTION BID BY KEVIN PHILLIPS VICTORY MAY HAVE A THOUSAND FATHERS BUT DEFEAT ALSO PRODUCES ITS SHARE OF PATERNITY SUITS AS UNHAPPY DEMOCRATS ARE LEARNING BILL CLINTON'S POLITICAL SELFDESTRUCTION BEGAN EVEN BEFORE HIS INAUGURATION A LOBBYISTRUN TRANSITION AND A CABINET OF WASHINGTON AND WALL STREET INSIDERS HAD PRESAGED ALL TOO CORRECTLY THE ABANDONMENT OF HIS ELECTIONYEAR PLEDGES OF OUTSIDERSHIP AND COMMITMENT TO THE AVERAGE AMERICAN HOUSEHOLD TO BE SURE MR CLINTON'S CONCILIATORY POLITICAL PERSONALITY WAS PART OF THE WEAKNESS THAT EMERGED IN 1993 BUT THE ENTRENCHED NATURE OF CONGRESSIONAL DEMOCRATS' PRACTICES AND RELATIONSHIPS AGGRAVATED BY THE DEMANDS OF PARTY CONSTITUENCIES HUNGRY AFTER 12 LEAN GOP YEARS ALSO MADE TAMING THE DEBT MONSTER AND REFORMING WASHINGTON ALMOST IMPOSSIBLE BY THE WINTER OF 199394 THE HIGH BUDGET DEFICIT AND PATTERN OF LOW ECONOMIC GROWTH THAT HAD HURT GEORGE BUSH STARTED TO WORK AGAINST THE DEMOCRATS NOW IT WAS THEIR PROMISES AND COMMITMENTS THAT WERE BEING BROKEN BY A RECOVERY STILL TOO MODEST TO HELP MOST MEDIANINCOME FAMILIES GET AHEAD TO MAKE THINGS WORSE MIDDLECLASS SWING VOTERS ALSO BEGAN GRUMBLING ABOUT THE SIDE OF MR CLINTON'S AGENDA THEY HAD VIRTUALLY IGNORED IN THE ECONOMYFOCUSED 1992 CAMPAIGN HIS CONTROVERSIAL DEMANDS TO ALLOW GAY PERSONNEL IN THE MILITARY THE WAVES OF UNWELCOME ILLEGAL IMMIGRANTS ROLLING ASHORE FROM HAITI AND ELSEWHERE THE LEFTLIBERAL POLITICAL CORRECTNESS ON THE RISE AGAIN IN US UNIVERSITIES AND THE NEW ROSTER OF SOCIAL ACTIVISTS MANIPULATING THE LEVERS OF POWER IN FEDERAL AGENCIES RATINGS OF MR CLINTON'S OWN PERFORMANCE HELD IN THE 50S THROUGH 1994 BECAUSE NO NEW RECESSION WAS UNDER WAY AND VOTERS STILL BLAMED A LOT OF PROBLEMS ON MR BUSH'S EARLIER ECONOMIC FLUBS NEVERTHELESS THE REPUBLICANS SCORED MAJOR GANS IN THE MIDTERM ELECTIONS THEY PICKED UP A SENATE SEAT IN 1993'S SPECIAL ELECTION IN TEXAS AND ADDED FOUR MORE IN NOVEMBER 1994 SHRINKING THE DEMOCRATIC MAJORITY TO A NARROW FOUR SEATS 52 TO 48 THE BIG SURPRISE CAME IN THE HOUSE WHERE THE GOP GAINED 23 SEATS FOR A TOTAL OF 200 ITS HIGHEST IN 40 YEARS WHITE HOUSE STRATEGISTS SHIVERED BECAUSE A PARTY ESTABLISHING A NEW NATIONAL SUPREMACY DOESN'T SUFFER SUCH LOSSES MOREOVER INCREASED GOP STRENGTH MEANT RENEWED WASHINGTON GRIDLOCK AND REPUBLICANS DIDN'T HAVE MUCH INCENTIVE TO COMPROMISE BECAUSE VOTERS THOUGHT DEMOCRATS CONTROLLED EVERYTHING AS A RESULT SPENDING ROSE TAXES STABILIZED AND THE DEFICIT WIDENED TO ALMOST 400 BILLION IN FISCAL 1995 ANXIOUS BOND MARKETS SENT INTEREST RATES UP DISSIPATING THE LOWER RATES THAT MR CLINTON HAD BOUGHT SO DEARLY IN 199394 BY ABANDONING COMMITMENTS TO THE MIDDLE CLASS THUS BY 1995 A NEW ECONOMIC TRUTH WAS EMERGING MAYBE THE DEFICIT COULDN'T REALLY BE DEALT WITH FINANCIAL MARKETS HERE AND ABROAD PUSHED INTEREST RATES UP AGAIN AND ECONOMISTS AND POLITICIANS STARTED TO WORRY ABOUT ANOTHER RECESSION WOULDBE REPUBLICAN PRESIDENTIAL CANDIDATES WERE ALREADY RISING TO THE BAIT SENATE REPUBLICAN LEADER BOB DOLE THE PARTY'S CHIEF NATIONAL SPOKESMAN WAS ALREADY OVER 70 AND SO TOO OLD TO BE A LOGICAL 1996 NOMINEE BUT HE AND SUPPLYSIDE CHAMPION JACK KEMP WERE COFRONTRUNNERS WITH 20 TO 25 APIECE IN THE POLLS THE OTHER MAJOR PLAYER WAS STILL A LATE1995 ENIGMA ROSS PEROT WHOSE 19 OF THE VOTE IN 1992 REPRESENTED THE BEST SHOWING FOR ANY INDEPENDENT PRESIDENTIAL CONTENDER SINCE 1912 THROUGHOUT 1993 AND 1994 MR PEROT HAD MUTED HIS CRITICISM WAITING TO SEE MR CLINTON'S DEFICITREDUCTION SCORECARD AND WHETHER HIS ADMINISTRATION MIGHT FULFILL ITS POTENTIAL FOR MARKING A NEW DEMOCRATIC WATERSHED BUT AFTER THE MIDTERM DEBACLE THE DEFICIT STALEMATE AND RISING INTEREST RATES OF 1995 MR PEROT SLID OFF THE TACTICAL FENCE THE FEISTY TEXAN BECAME INCREASINGLY CRITICAL OF MR CLINTON HEARKENED TO ADVISERS WHO SAID HE COULD BE AN EVEN STRONGER CANDIDATE IN 1996 AND WENT SO FAR AS TO WEIGH A NEW MESSAGE THAT THIS TIME HE SHOULD TRY FOR THE REPUBLICAN NOMINATION FORMER REAGAN CAMPAIGN MANAGER JOHN SEARS MADE THIS CASE AND HE HAD A POINT IN MOST STATES AT LEAST 60 TO 70 OF PEROT SUPPORTERS CAME FROM THE OLD REPUBLICAN COALITION ENOUGH TO MAKE HIM A FORCE IN 1996 GOP CAUCUSES AND PRIMARIES IN FACT MR PEROT'S OLD ISSUES WERE COMING ALIVE AGAIN AS THE PUBLIC'S INITIAL HOPES FOR THE NEW ADMINISTRATION WANED THE PROBLEM WAS NOT JUST MASSIVE BUDGET DEFICITS OR BROKEN PROMISES TO THE MIDDLE CLASS IT WAS ALSO THAT WASHINGTON LOBBYISTS WERE FATTER SLEEKER AND MORE INFLUENTIAL THAN EVER I TOLD YOU SO THE TEXAS POPULIST SAID AND THIS TIME MORE OF HIS ADVOCATES WERE DISILLUSIONED DEMOCRATS THERE WERE ALREADY INTRAPARTY PROBLEMS FORMER CALIFORNIA GOV JERRY BROWN MR CLINTON'S BITTEREST 1992 OPPONENT ANNOUNCED IN MIDNOVEMBER 1995 THAT HE WOULD AGAIN SEEK THE DEMOCRATIC NOMINATION RESTATING HIS FOURYEAROLD CHARGE THAT MR CLINTON WAS FINANCED BY THE SAME POWER BROKERS HE PURPORTED TO DEPLORE MR BROWN WASN'T A DANGER IN IOWA OR NEW HAMPSHIRE BUT HIS HOMESTATE POTENTIAL SCARED THE WHITE HOUSE ABOUT CALIFORNIA WHICH HAD ADVANCED ITS PRESIDENTIAL PRIMARY TO MARCH IN ORDER TO DRAW ATTENTION TO ITS LINGERING ECONOMIC PROBLEMS THE BIGGEST HEADLINES THOUGH WENT TO THE REPUBLICANS SEN DOLE DESPITE BEING AN INACTIVE CANDIDATE WON FEBRUARY'S IOWA CAUCUSES MR KEMP THEN WON A NARROW VICTORY IN NEW HAMPSHIRE BUT MR PEROT GOT 22 PLACING SECOND WITH MOREORLESS SPONTANEOUS WRITEINS THAT PULLED THE TEXAN DEFINITIVELY INTO THE RACE AND 22 MILLION OF TELEVISION TIME OVER EIGHT DAYS SUFFICED TO SECURE HIM A BIG WIN IN CALIFORNIA NATIONAL GOP POLLS IMMEDIATELY AFTER THE CALIFORNIA PRIMARY GAVE MR PEROT 31 MR KEMP 20 MR DOLE 18 AND PATRICK BUCHANAN 6 ON MARCH 10 THE MEDIA STAKED OUT MR PEROT'S VACATION HOME ON LAKE TEXOMA TEXAS DURING A CRUCIAL DOLEPEROT MEETING THE RESULTING ANNOUNCEMENT STUNNED THOSE CERTAIN THAT MR PEROT'S EGOTISM WAS INCURABLE SEN DOLE WOULD RUN FOR PRESIDENT AND MR PEROT FOR VICE PRESIDENT ON THE SAME TICKET IN STATES WHERE THE TWO COULDN'T BE ON THE GOP PRIMARY BALLOT TOGETHER HOWEVER ONLY ONE WOULD RUN BOTH PLEDGED TO SERVE JUST A SINGLE TERM TO CLEAN HOUSE IN WASHINGTON DEAL WITH THE DEFICIT AND THEN RETIRE THEY WOULD DECLINE PUBLIC FINANCING AND USE MR PEROT'S MONEY THE PLAN STRUCK A CHORD AND 63 OF THE DELEGATES ELECTED TO THE GOP CONVENTION SPORTED DOLEPEROT BUTTONS REPORTERS WERE SURPRISED AT HOW DOLEPEROT STRATEGISTS MANAGED A COMPROMISE ABORTION PLATFORM BUT THE CLINTON YEARS HAD LEFT RELIGIOUSRIGHT LEADERS PREOCCUPIED WITH THE EMERGING GAYRIGHTS ISSUE PARTY STRATEGISTS CALCULATED THAT 10 OF REPUBLICANS ESPECIALLY NORTHEASTERN MODERATES WOULD BOLT TO MR CLINTON WHILE JACK KEMP AND SOME OF HIS FOLLOWERS MIGHT ALL BUT ENDORSE THE LIBERTARIAN CANDIDATE EVEN SO IT LOOKED LIKE A HISTORIC PARTY REPACKAGING SURVEYS TAKEN RIGHT AFTER THE AUGUST DEMOCRATIC CONVENTION SHOWED THE CLINTONGORE TICKET LEADING THE DOLEPEROT SLATE 47 TO 41 WITH 3 BACKING THE LIBERTARIANS AND 2 BEHIND MR BROWN'S LEFTLIBERAL REFORM SPLINTER PARTY BUT THAT WAS BEFORE THE 1996 REMAKES OF THOSE HALFHOUR TV CHATS AND HOMEMADE ECONOMIC CHARTS THAT MR PEROT HAD USED FOUR YEARS EARLIER TO CUT MR BUSH OFF AT THE KNEES IN THIS ROUND THE AUDIENCES WERE EVEN BIGGER AND THE DEBUNKING EVEN FIERCER AND THERE WAS A NEW TARGET THIS TIME YUKKED MR PEROT THE DE IN DEFICIT MATCHED THE DE IN DEMOCRAT THE BROKENPROMISES LITANY WAS TAKEN RIGHT FROM MR CLINTON'S TRUSTME PLEDGE TO THE MIDDLE CLASS IN HIS MADISON SQUARE GARDEN ACCEPTANCE SPEECH AND THE FORMER FOREIGN AGENTS IN ALLIGATOR SHOES WORKED NOT ON THE BUSH REELECTION COMMITTEE BUT INSIDE THE CLINTON STATE DEPARTMENT MOREOVER THE MOST EFFECTIVE AD OF 1996 WHICH SHOWED THREE DEMOCRATIC WASHINGTON SUPERLOBBYISTS IN A MONTAGE WITH LEECHES RATS AND VULTURES HAD ITS VISIBILITY TREBLED IN LATE OCTOBER AFTER THE DEMOCRATS WENT TO COURT TO TRY TO STOP IT A FEDERAL DISTRICT JUDGE GRANTED A TEMPORARY INJUNCTION AGAINST THE AD BUT WAS OVERRULED BY A GOP APPEALSCOURT JUDGE THE RESULT WAS HARDLY A RUNAWAY MR CLINTON HELD MUCH OF THE INDUSTRIAL NORTH AND MIDSOUTH WHILE THE GOP TICKET WON NEW JERSEY NEW HAMPSHIRE MAINE OHIO VIRGINIA FLORIDA THE DEEP SOUTH THE PLAINS AND ROCKY MOUNTAIN STATES AND ALMOST ALL OF THE WEST TEXAS WHICH WENT TO DOLEPEROT MIGHT NOT HAVE IF CLINTON'S TREASURY SECRETARY LLOYD BENTSEN HADN'T RETIRED IN MILD DISGUST IN 1995 THE VOTE IN CALIFORNIA WHICH ULTIMATELY GAVE 47 TO DOLEPEROT AND 45 TO CLINTONGORE WITH AN 8 SPLIT BETWEEN MR BROWN'S REFORMERS AND THE LIBERTARIANS WAS TIGHT ALL THE WAY NEITHER SIDE'S OLD PRESIDENTIAL COALITION IS STILL INTACT AND MR CLINTON HAS JOINED THE FIVE OTHER PRESIDENTS SINCE LYNDON JOHNSON WHO WEREN'T ABLE TO HOLD THE WHITE HOUSE FOR TWO TERMS BUT FROM THE VANTAGE POINT OF 1996 MESSRS DOLE AND PEROT KNOW THAT AMERICAN POLITICS HAS A NEW QUESTION IS IT STILL POSSIBLE TO HAVE EVEN ONE SUCCESSFUL TERM MR PHILLIPS IS THE PUBLISHER OF THE AMERICAN POLITICAL REPORT HIS NEW BOOK BOILING POINT REPUBLICANS DEMOCRATS AND THE DECLINE OF MIDDLECLASS PROSPERITY IS BEING PUBLISHED THIS MONTH BY RANDOM HOUSE SEE RELATED ARTICLE CLINTON BEATS CHENEY IN LANDSLIDE WSJ JAN 20 1993 9301200153 930120 CELLULAR BUYS INTERESTS FROM U S WEST UNIT TO WIDEN CLIENT BASE ENGLEWOOD COLO CELLULAR INC SAID IT INCREASED ITS POTENTIAL CUSTOMER BASE BY 135000 BY ACQUIRING FROM U S WEST NEWVECTOR GROUP INC BELLEVUE WASH A CONTROLLING INTEREST IN THE METROPOLITAN STATISTICAL AREAS FOR SIOUX FALLS SD AND BISMARCK ND AS WELL AS FOR THE SOUTH DAKOTA 9 RURAL SERVICE AREA FINANCIAL DETAILS OF THE TRANSACTION WEREN'T DISCLOSED CELLULAR SAID THE ACQUISITION INCREASES ITS POTENTIAL BASE TO 28 MILLION IN 85 CELLULAR TELEPHONE SYSTEMS AND ITS MANAGED MARKETS TO 51 WITH 46000 SUBSCRIBERS IN NINE STATES CELLULAR SAID IT FINANCED THE TRANSACTION BY DRAWING ON ITS 100 MILLION SENIOR CREDIT FACILITY WITH THE NATIONAL BANK FOR COOPERATIVES DENVER THE COMPANY SAID THAT THE BANK AND NORTHERN TELECOM FINANCE CORP NASHVILLE TENN CELLULAR'S SUBORDINATED LENDER A UNIT OF CANADA'S BCE INC AGREED TO INCREASE THE FACILITY TO 130 MILLION AND BRING NORTHERN TELECOM FINANCE IN AS A SENIOR PARTICIPANT IN THE CREDIT FACILITY IN A RELATED TRANSACTION CELLULAR ALSO SAID IT CLOSED ON JAN 15 THE PRIVATE PLACEMENT OF 495 MILLION OF 875 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE 2001 THE DEBENTURES ARE CONVERTIBLE ANYTIME BEFORE MATURITY INTO SHARES OF THE COMPANY'S COMMON STOCK AT A CONVERSION PRICE OF 15 A SHARE SUBJECT TO CERTAIN CONDITIONS CELLULAR SAID IT WILL USE NET PROCEEDS TO SUPPLEMENT THE FINANCING FOR THE PURCHASE OF THE MARKETS ACQUIRED FROM U S WEST NEWVECTOR A UNIT OF U S WEST INC DENVER 9301200152 930120 TREASURY PLANS TO SELL 232 BILLION OF BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 325 MILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF 232 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 2353 BILLION THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING APRIL 29 1993 AND JULY 29 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794C44 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794D92 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EST MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EST 9301200151 930120 TECHNOLOGY & HEALTH COMPUTERS HELPING DOCTORS MATCH CARE WITH COSTS CAN LOWER BILLS STUDY SAYS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL DOCTORS WHO USE COMPUTERS INSTEAD OF PAPER TO ORDER DRUGS AND TESTS FOR HOSPITAL PATIENTS CAN SIGNIFICANTLY REDUCE MEDICAL COSTS RESEARCHERS AT INDIANA UNIVERSITY SAID IN A STUDY OF PHYSICIANS' TREATMENT OF NEARLY 5000 PATIENTS AT AN INDIANAPOLIS HOSPITAL THE RESEARCHERS FOUND THAT CHARGES TO PATIENTS TREATED BY COMPUTERUSING DOCTORS WERE NEARLY 13 LOWER PER HOSPITAL ADMISSION THAN CHARGES FOR PATIENTS TREATED BY DOCTORS WHO USED PAPER AND PEN THE COMPUTER PROGRAMS USED IN THE STUDY PERMIT A DOCTOR TO IMMEDIATELY SEE THE COSTS OF THE TESTS AND THERAPIES HE IS ORDERING FOR HIS PATIENTS IF SIMILAR STRATEGIES WERE APPLIED NATIONWIDE RESEARCHERS SAID POTENTIAL SAVINGS COULD AMOUNT TO TENS OF BILLIONS OF DOLLARS THE FINDINGS BOLSTER CLAIMS THAT MORE AGGRESSIVE USE OF COMPUTERS CAN REDUCE WASTE AND INEFFICIENCY IN THE HEALTHCARE SYSTEM INDEED MANY HEALTH POLICY EXPERTS BELIEVE THAT A MAJOR INVESTMENT TO INCREASE AUTOMATION OF EVERYTHING FROM PROCESSING CLAIMS TO MEASURING QUALITY OF CARE WILL BE CRUCIAL TO THE SUCCESS OF ANY HEALTH REFORM PLAN DEVELOPED BY THE CLINTON ADMINISTRATION AND CONGRESS ALTHOUGH MOST HOSPITALS AND CLINICS USE COMPUTERS FOR BILLING AND OTHER ADMINISTRATIVE FUNCTIONS FEW USE COMPUTERIZED PATIENT MEDICAL RECORDS THAT PERMIT MATCHING A DOCTOR'S DECISION WITH THE COST OF CARE MOREOVER MANY DOCTORS FOR A VARIETY OF REASONS RESIST USING COMPUTERS FOR PATIENT CLINICAL DATA WE'VE SHOWN THAT THE THINGS YOU CAN DO WITH COMPUTERS ON ENTERING PHYSICIAN ORDERS CAN SAVE MONEY SAID CLEMENT MCDONALD PROFESSOR AT THE UNIVERSITY'S SCHOOL OF MEDICINE AND DIRECTOR OF COMPUTER SCIENCE RESEARCH AT THE UNIVERSITY'S REGENSTRIEF INSTITUTE BUT NOT EVERYBODY CAN DO THIS RIGHT AWAY HE IS PRINCIPAL INVESTIGATOR ON THE STUDY WHICH IS PUBLISHED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION IN THE STUDY 22 TEAMS OF RESIDENTS AND INTERNS USED A COMPUTER SYSTEM TO ORDER SERVICES FOR THEIR PATIENTS WHILE 46 TEAMS USED A TRADITIONAL PAPER HOSPITAL CHART WHEN DOCTORS ENTERED A PATIENT'S NAME AND DIAGNOSIS INTO A COMPUTER WORKSTATION THEY RECEIVED INFORMATION DESCRIBING PREFERRED TESTS AND TREATMENTS FOR THE DIAGNOSIS COMPARATIVE COSTS FOR THE SERVICES AND INFORMATION INTENDED TO AVOID UNNECESSARY TESTS THE COMPUTER GIVES YOU A PRICE FOR EVERY TEST AND ALL THE MEDICATIONS SAID PATRICK OKOLO A RESIDENT AT WISHARD MEMORIAL HOSPITAL WHERE THE STUDY WAS DONE IT HELPS US TO STAY COSTCONSCIOUS FOR INSTANCE A DOCTOR ORDERING A HEAVILY PROMOTED ANTIBIOTIC WAS TOLD BY THE COMPUTER THAT IT COSTS 350 A PILL COMPARED WITH A FEW PENNIES FOR AN ALTERNATIVE AND THAT STUDIES HAVE SHOWN THE EXPENSIVE DRUG ISN'T EFFECTIVE FOR TREATING PNEUMONIA DR MCDONALD SAID WE'D REMIND THEM OF THESE THINGS TO COUNTERACT PROMOTIONAL MATERIAL THEY GET FROM DRUG COMPANIES HE SAID THE RESEARCHERS FOUND THAT TOTAL CHARGES AVERAGED NEARLY 900 LESS FOR PATIENTS WHOSE DOCTORS USED THE SYSTEM COMPARED WITH THOSE WORKING WITH A TRADITIONAL CHART REFLECTING LOWER COSTS FOR DRUGS AND TESTS THEY WERE ALSO DISCHARGED NEARLY A DAY SOONER ON AVERAGE THOUGH LENGTH OF STAY DATA WEREN'T CONSIDERED STATISTICALLY SIGNIFICANT PATIENT CHARACTERISTICS WERE SIMILAR FOR BOTH GROUPS BASED ON READMISSION AND OTHER FACTORS THE RESEARCHERS SAID USE OF THE WORKSTATIONS DIDN'T COMPROMISE QUALITY AND MAY HAVE IMPROVED IT BY FLAGGING DOCTORS ABOUT PATIENT ALLERGIES AND POTENTIAL ADVERSE REACTIONS TO MEDICINES THE RESEARCHERS FOUND AT LEAST ONE DRAWBACK DOCTORS USING THE COMPUTER SPENT ABOUT FIVE MINUTES MORE PER PATIENT TO WRITE ORDERS THAN THOSE USING THE CHART ONE REASON IS THAT FOLLOWING THE COMPUTER MENUS BUILT IN TO INCREASE COSTAWARENESS ADDS TO TIME TO USE THE PROGRAM DR MCDONALD SAID WILLIAM TIERNEY PROFESSOR OF MEDICINE AT THE MEDICAL SCHOOL WAS LEAD AUTHOR OF THE STUDY WHICH WAS FUNDED BY THE REGENSTREIF INSTITUTE AND THE US AGENCY FOR HEALTH CARE POLICY AND RESEARCH 9301200150 930120 PAR PHARMACEUTICAL'S TWO EXOFFICIALS PLEAD GUILTY TO FALSIFICATION BALTIMORE TWO FORMER EXECUTIVES OF GENERIC DRUG PRODUCER PAR PHARMACEUTICAL INC PLEADED GUILTY TO CHARGES OF FALSIFYING DRUG MARKETING APPLICATIONS AND HIDING POOR TEST RESULTS FOR SOME GENERIC DRUGS ASHOK PATEL ADMITTED IN US DISTRICT COURT TO FILING FALSE APPLICATIONS FOR THE GENERIC VERSION OF THE HYPERTENSION DRUG MAXIDE A SECOND PERSON BARRY S GELLER ADMITTED TO OBSTRUCTING A FOOD AND DRUG ADMINISTRATION INSPECTION OF THE COMPANY BY PASSING OFF VIALS OF ORIGINAL MAXIDE AS PAR'S OWN GENERIC VERSION A THIRD EXECUTIVE RK PATEL WHO ISN'T RELATED TO ASHOK PATEL PLEADED GUILTY TO SIMILAR CHARGES ON JAN 11 ALL THREE MEN FACE UP TO FIVE YEARS IN PRISON AND 250000 FINES PAR A UNIT OF PHARMACEUTICAL RESOURCES INC IN SPRING VALLEY NY TO DATE HAS PLEADED GUILTY TO 10 CRIMINAL VIOLATIONS REGARDING ITS MANUFACTURE OF GENERIC DRUGS AND STATEMENTS TO THE FDA FOR WHICH IT HAS BEEN FINED 25 MILLION BARRY S GELLER A FORMER OFFICIAL OF PAR PHARMACEUTICAL INC A SUBSIDIARY OF PHARMACEUTICAL RESOURCES INC RECENTLY PLEADED GUILTY TO OBSTRUCTING A FEDERAL INSPECTION INVOLVING PAR'S GENERIC FORMULATION OF THE BRANDED HYPERTENSION DRUG MAXZIDE THE INVESTIGATION INVOLVED PAR'S APPLICATION TO MARKET THE GENERIC VERSION AND SWITCHING OF TWO BATCHES OF ITS OWN PRODUCT NOT SWITCHING OF THE BRAND NAME PRODUCT FOR PAR'S VERSION AN ARTICLE LAST WEDNESDAY INCORRECTLY SAID MR GELLER ADMITTED TO OBSTRUCTING THE FEDERAL INVESTIGATION BY PASSING OFF SAMPLES OF THE ORIGINAL BRANDNAME DRUG AS PAR'S OWN NEITHER MR GELLER NOR PAR WERE EVER ALLEGED TO HAVE SUBSTITUTED A BRAND NAME PRODUCT AS PAR'S OWN IN SEEKING FOOD AND DRUG ADMINISTRATION APPROVAL FOR THE GENERIC EQUIVALENT 9301200149 930120 WHO'S NEWS SE BANKEN'S HOLTBACK QUITS ABRUPTLY IN SIGN OF POSSIBLE SHAKEUP SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM ROGER HOLTBACK AN EXECUTIVE VICE PRESIDENT AT SKANDINAVISKA ENSKILDA BANKEN SWEDEN'S BIGGEST BANK RESIGNED ABRUPTLY IN THE CLEAREST SIGN YET OF AN IMPENDING MANAGEMENT SHAKEUP MR HOLTBACK 47 YEARS OLD WILL LEAVE SE BANKEN MARCH 1 TO BECOME PRESIDENT OF BURE FOERVALTNINGS AB A FLEDGLING VENTURE CAPITAL FIRM HIS DEPARTURE COMES ONLY TWO YEARS AFTER HE JOINED THE BANK AS MANAGEMENT TURMOIL INTENSIFIED OVER THE PAST 18 MONTHS MANY ANALYSTS TOUTED THE TOUGHMINDED EXECUTIVE WHO HAS INDUSTRIAL EXPERIENCE AS A LEADING CANDIDATE TO BECOME THE BANK'S CHIEF EXECUTIVE OFFICER BUT MR HOLTBACK'S CHANCE FOR THE TOP JOB VANISHED WITH THE APPOINTMENT OF ANOTHER NONBANKER TELEFON AB LM ERICSSON'S CHAIRMAN BJOERN SVEDBERG AS SE BANKEN'S CHIEF EXECUTIVE LAST APRIL MOREOVER PEOPLE FAMILIAR WITH THE SITUATION SUGGESTED MR HOLTBACK'S OWN JOB AS HEAD OF SE BANKEN'S UNPROFITABLE GOETEBORG REGION WILL DISAPPEAR UNDER A SWEEPING REORGANIZATION MR SVEDBERG IS EXPECTED TO UNVEIL AT A BOARD MEETING THURSDAY SE BANKEN REFUSED TO DISCUSS ITS REORGANIZATION PLANS OR THE REASONS FOR MR HOLTBACK'S DEPARTURE MR HOLTBACK DIDN'T RETURN PHONE CALLS SEEKING COMMENT 9301200148 930120 INTERNATIONAL BRAZIL'S PRESIDENT ISSUES NEW GUIDELINES ON PRIVATIZATION BUT RECEPTION IS COOL BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO BRAZILIAN PRESIDENT ITAMAR FRANCO ISSUED NEW RULES FOR THE COUNTRY'S PRIVATIZATION PROGRAM IN AN EFFORT TO MEET CRITICISMS OF PAST SALES BUT BANKERS SAID THE GUIDELINES COULD SERIOUSLY IMPEDE THE PROGRAM MR FRANCO INCREASED THE GOVERNMENT'S DIRECT INVOLVEMENT IN SELLING STATE ASSETS BY GIVING IT A SAY IN HOW MUCH CASH AND HOW MUCH DEBT CAN BE USED IN EACH SALE MR FRANCO WILL HAVE THE FINAL WORD ON SUCH MATTERS AS THE MINIMUM PRICE OF A COMPANY THE GUIDELINES ALSO PROHIBIT THE PENSION FUNDS OF STATEOWNED COMPANIES FROM PARTICIPATING IN FUTURE SELLOFFS LEAVING SOME OF BRAZIL'S RICHEST AND MOST LIQUID PLAYERS OUT OF THE GAME THE RULES LEAVE UNCHANGED THE LIMIT OF 40 ON FOREIGN OWNERSHIP OF PRIVATIZED COMPANIES GOVERNMENT OFFICIALS SAY THEY ARE CONSIDERING SUBMITTING A BILL TO CONGRESS RAISING THE CEILING TO 100 ON A CASEBYCASE BASIS BUT CAUTION THAT THERE IS A TRAFFIC JAM OF BILLS SO SUCH A CHANGE WILL REQUIRE TIME IN ANNOUNCING THE RULES THE GOVERNMENT SAID IT IS SEEKING TO AVOID RUNNING INTO A SERIES OF LEGAL AND POLITICAL OBSTACLES THAT HAVE PLAGUED THE PROGRAM AND CAUSED SEVERAL DELAYS IN PLANNED SALES THIS DECREE SOLVES NUMEROUS OPERATIONAL PROBLEMS THAT WE ENCOUNTERED SAID ANTONIO BARROS DE CASTRO PRESIDENT OF THE NATIONAL DEVELOPMENT BANK IT INCREASES THE TRANSPARENCY OF THE PROGRAM AND DIMINISHES THE POSSIBILITY OF LEGAL QUESTIONINGS BUT MANY BANKERS FEAR THE RULES WILL MAKE FUTURE SALES MORE DIFFICULT AND QUESTION WHETHER MR FRANCO REALLY WANTS TO GO ON WITH THE PRIVATIZATION PROGRAM IF I WANTED TO STOP THE PROGRAM I'D ISSUE PRECISELY THESE MEASURES SAYS IGOR CORNELSEN DIRECTOR OF INVESTMENT BANK CHARTERED WEST LB IN SAO PAULO THIS MAY BE LEGALLY FINE BUT IT HAS NOTHING TO DO WITH THE MARKET THIS ISN'T BUSINESS THIS IS BUREAUCRACY BANKERS FEAR THAT THE RULES GIVE MR FRANCO DISCRETIONARY POWER TO CHANGE THE CONDITIONS OF SALES OR EVEN STOP THEM ADDING AN UNNECESSARY LEVEL OF POLITICAL UNCERTAINTY THAT COULD DETER SOME INVESTORS THE PRESIDENT CAN SAY THE PRICE IS TOO LOW' OR 'I WANT MORE OR LESS FOREIGN INVESTMENT' SAYS ALBERTO ORTENBLAD EXECUTIVE DIRECTOR OF CONSULTANTS BRASILPAR SERVICOS FINANCEIROS IN SAO PAULO BANKERS ARE ESPECIALLY CRITICAL OF THE BAN ON PENSION FUNDS OF STATE COMPANIES THOUGH THEY ARE PRIVATE ENTITIES THESE PENSION FUNDS RECEIVE LARGE CONTRIBUTIONS FROM THE STATE SECTOR AND THEIR ACTIVE PARTICIPATION IN SOME SALES HAS RAISED CRITICISM OF FAKE PRIVATIZATIONS BUT MR ORTENBLAD SAYS THE BAN IS LIKE USING A REVOLVER TO KILL A FLY INSTEAD OF BANNING THEM HE AND OTHERS SAY THE GOVERNMENT SHOULD IMPOSE A LIMIT ON THEIR PARTICIPATION THEY CONTROL ABOUT 20 BILLION WORTH OF ASSETS AND IN A COUNTRY OF SCARCE RESOURCES THE GOVERNMENT CAN'T AFFORD TO THROW THIS OUT ESPECIALLY SINCE FOREIGN BUYERS ARE STILL LIMITED TO 40 SAYS CARLOS LANGONI A CONSULTANT THE PRIVATIZATION PROCESS WAS RECENTLY SUSPENDED FOR THREE MONTHS BY MR FRANCO PENDING THE NEW RULES IT IS SET TO RESUME MARCH 19 WITH THE SALE OF PETROCHEMICAL GROUP POLIOLEFINAS BUT MR BARROS DE CASTRO SAID YESTERDAY THERE COULD BE CHANGES IN THE TIMETABLE 9301200147 930120 WHO'S NEWS HOLSON BURNES GROUP INC HOLSON BURNES GROUP INC NORTH SMITHFIELD RI THOMAS E HOFFMEISTER RESIGNED AS PRESIDENT AND A DIRECTOR OF THIS PHOTO ALBUM MAKER TO PURSUE ACTIVITIES IN DIFFERENT AREAS JOSHUA BEKENSTEIN 34 A DIRECTOR SINCE 1986 WAS NAMED ACTING PRESIDENT UNTIL A PERMANENT SUCCESSOR IS FOUND THE COMPANY SAID 9301200146 930120 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS PAUL G KOZLOWSKI WAS NAMED VICE PRESIDENT OF THIS COMPUTER MAKER'S NEW COMMUNICATION EDUCATION AND ENTERTAINMENT BUSINESS UNIT REPORTING DIRECTLY TO ROBERT B PALMER CHIEF EXECUTIVE OFFICER MR KOZLOWSKI 54 YEARS OLD FOUNDED CONTEL CELLULAR INC IN 1982 AND BECAME PRESIDENT OF GTE MOBILE COMMUNICATION AFTER CONTEL CELLULAR MERGED WITH THE GTE CORP UNIT IN 1991 9301200145 930120 WHO'S NEWS BANK ONE CORP BANK ONE CORP COLUMBUS OHIO LABAN P JACKSON JR AND THEKLA SHACKELFORD WERE NAMED DIRECTORS OF THIS BANK HOLDING COMPANY EXPANDING ITS BOARD TO 12 MEMBERS MR JACKSON 50 YEARS OLD IS CHAIRMAN OF CLEAR CREEK PROPERTIES INC A LEXINGTON KY REAL ESTATE DEVELOPER MRS SHACKELFORD 58 IS AN OHIO EDUCATION CONSULTANT WHO FOUNDED SCHOOL SELECTION CONSULTING AN ADMISSIONS SERVICE FOR SECONDARY SCHOOLS AND COLLEGES 9301200144 930120 INAUGURATION A SPECIAL REPORT FOREIGN FOCUS LOOKING EAST BY BARRY WAIN RELATIVELY PEACEFUL AND PROSPEROUS AND INCREASINGLY DEMOCRATIC ASIA HOLDS FEW IMMEDIATE GEOPOLITICAL CHALLENGES FOR BILL CLINTON BUT THE NEW PRESIDENT WON'T BE ABLE TO IGNORE THE REGION FOR LONG A PEACE AGREEMENT IN CAMBODIA BROKERED BY THE UNITED NATIONS IS RAPIDLY UNRAVELING CHINA IS MODERNIZING ITS ARMED FORCES AND ACQUIRING THE MEANS TO PROJECT POWER INTO SOUTHEAST ASIA NORTH KOREA APPARENTLY REMAINS DETERMINED TO ACQUIRE NUCLEAR WEAPONS AN ARMS RACE BEDEVILS SOUTHERN ASIA AND ALL OF THESE TROUBLE SPOTS WILL REQUIRE AMERICAN ATTENTION CAMBODIA IS THE MOST IMMINENT CONCERN DESPITE HAVING JOINED THREE OTHER FACTIONS IN SIGNING THE PEACE AGREEMENT IN OCTOBER 1991 THE KHMER ROUGE HAS REFUSED TO DISARM AND TAKE PART IN AN ELECTION SCHEDULED FOR MAY THE UN ALMOST CERTAINLY WILL DECIDE TO HOLD THE ELECTION WITHOUT THE KHMER ROUGE WHO WERE RESPONSIBLE FOR THE DEATHS OF MORE THAN ONE MILLION PEOPLE WHEN THEY RULED THE COUNTRY FROM 197579 THE TROUBLE IS THAT KHMER ROUGE FORCES ARE GROWING MORE AGGRESSIVE AND NOW THREATEN TO RESTART THE CIVIL WAR EVEN IF THE ELECTION CAN BE CONDUCTED SAFELY UN PEACEKEEPERS ARE LIKELY TO BECOME EMBROILED IN ARMED CLASHES MOREOVER HAVING DISPATCHED 22000 PERSONNEL AND SPENT 28 BILLION ON ITS BIGGEST OPERATION EVER THE UN WILL FIND IT HARD TO WALK AWAY AFTER THE VOTE AND LEAVE A FRAGILE DEMOCRATIC GOVERNMENT AT THE MERCY OF THE KHMER ROUGE IN CONSULTATION WITH US ALLIES MR CLINTON SOON WILL BE EXPECTED TO DECIDE ON THE NATURE AND DURATION OF ANY ADDITIONAL COMMITMENT TO CAMBODIA MEANWHILE THE DIVIDED KOREAN PENINSULA REMAINS THE MOST SERIOUS POTENTIAL FLASHPOINT IN ASIA WHILE SKILLFUL SOUTH KOREAN DIPLOMACY HAS WEAKENED SUPPORT FOR NORTH KOREA SEOUL HAS NORMALIZED ITS RELATIONS WITH BOTH CHINA AND RUSSIA FORMERLY THE NORTH'S MAIN BACKERS PYONGYANG REMAINS RECALCITRANT SPECIFICALLY NORTH KOREA REFUSES TO COOPERATE ON A NUCLEARINSPECTION REGIME THAT COULD TEST MR CLINTON WHO VOWED DURING THE PRESIDENTIAL CAMPAIGN TO ACT MORE VIGOROUSLY TO PREVENT THE SPREAD OF WEAPONS OF MASS DESTRUCTION IN A SIMILAR VEIN MR CLINTON WILL NEED TO DECIDE IF AND HOW HE SHOULD TRY TO CURB THE DANGEROUS ARMS RACE IN THE INDIAN SUBCONTINENT THE SUSPENSION OF US MILITARY AID TO PAKISTAN HASN'T COOLED ISLAMABAD'S DESIRE TO ACQUIRE NUCLEAR WEAPONS NOR HAS THE THREAT OF SANCTIONS PERSUADED INDIA TO SIGN THE NUCLEAR NONPROLIFERATION TREATY LAST MONTH'S UPSURGE OF RELIGIOUS VIOLENCE IN INDIA DEALT A BLOW TO FLEDGLING EFFORTS BY INDIA AND PAKISTAN TO PUT DECADES OF ENMITY BEHIND THEM WASHINGTON HAS TRIED TO HELP THEM SETTLE THEIR QUARREL OVER KASHMIR THE MOST DANGEROUS OF SEVERAL FRICTION POINTS THE TWO COUNTRIES HAVE ALREADY FOUGHT TWO WARS OVER KASHMIR AND THE US FEARS ANOTHER CONFLICT COULD GO NUCLEAR UNLESS TENSIONS RECEDE MR CLINTON COULD FIND HIMSELF INVOLVED IN EFFORTS TO AVOID SUCH A CONFLAGRATION AS FOR CHINA THAT COUNTRY'S MILITARY PLANS UPGRADING CAPABILITY WHILE REDUCING MANPOWER ARE CAUSING PARTICULAR CONCERN IN PARTS OF SOUTHEAST ASIA THAT'S BECAUSE BEIJING IS BELIEVED TO BE ACQUIRING FROM RUSSIA AND OTHER SOURCES THE MEANS TO PROJECT POWER IN SUPPORT OF TERRITORIAL CLAIMS TO LARGE PARTS OF THE SOUTH CHINA SEA FAR FROM THE CHINESE MAINLAND ALTHOUGH THE US HAS SIGNALED THAT IT DOESN'T INTEND TO GET INVOLVED IN CONFLICTING CLAIMS TO THE SPRATLY ISLANDS AND OTHER DISPUTED TERRITORIES WASHINGTON'S ALLIES ARE COUNTING ON A CONTINUING AMERICAN PRESENCE TO KEEP THE PEACE WHILE NOBODY WANTS TO SEE A REPEAT OF PAST US CHINA CONFRONTATIONS MOST COUNTRIES IN THE REGION HOPE THAT MR CLINTON DOESN'T WITHDRAW US FORCES PRECIPITATELY AND UPSET THE POWER BALANCE IN ASIA MR WAIN IS THE ASIAN WALL STREET JOURNAL'S EDITOR AT LARGE 9301200143 930120 INAUGURATION A SPECIAL REPORT ESSAY BEWARE DANGERS AHEAD STICK TO YOUR PRINCIPLES REMEMBER POLITICS AND OTHER FREE ADVICE FOR THE NEW PRESIDENT BY ALBERT R HUNT BILL CLINTON A VORACIOUS READER SHOULD TAKE A LOOK AT HARRY MCPHERSON'S BOOK ABOUT HIS OWN POLITICAL EDUCATION IN WASHINGTON MR MCPHERSON A COUNSELOR TO PRESIDENT LYNDON JOHNSON IS ONE OF THE TRULY WISE MEN IN THE NATION'S CAPITAL AND HIS BOOK IS FULL OF SPECIAL INSIGHTS ONE PARTICULARLY REVEALING INCIDENT OCCURRED IN LATE 1965 WHEN PRESIDENT JOHNSON MADE A MAJOR EFFORT TO PUSH HOME RULE FOR THE DISTRICT OF COLUMBIA THROUGH CONGRESS HE WAS HANDED A STINGING AND AT THAT STAGE RARE DEFEAT MR MCPHERSON ASKED THE MASTER POLITICIAN IF HE REGRETTED HIS DECISION THE ANSWER WAS NO YOU GOT TO GIVE IT ALL YOU CAN THAT FIRST YEAR THE PRESIDENT ADMONISHED HIS YOUNG AIDE YOU'VE GOT JUST ONE YEAR WHEN THEY TREAT YOU RIGHT AND BEFORE THEY START WORRYING ABOUT THEMSELVES THE THIRD YEAR YOU LOSE VOTES IF THIS WAR IN VIETNAM GOES ON I'LL LOSE A LOT OF THEM THE FOURTH YEAR'S ALL POLITICS YOU CAN'T PUT ANYTHING THROUGH WHEN HALF THE CONGRESS IS THINKING HOW TO BEAT YOU SO YOU'VE GOT ONE YEAR TO BE SURE THERE IS IN MR JOHNSON'S PRONOUNCEMENT AS IN MOST POLITICAL WISDOM A LITTLE HYPERBOLE FRANKLIN ROOSEVELT PASSED THE SOCIAL SECURITY ACT IN THE THIRD YEAR OF HIS FIRST TERM AND HARRY TRUMAN'S MARSHALL PLAN CLEARED CONGRESS THREE YEARS AFTER THE MISSOURI DEMOCRAT BECAME PRESIDENT RONALD REAGAN PASSED A SWEEPING REVISION OF THE TAX SYSTEM IN THE SECOND YEAR OF HIS SECOND TERM AND PRESIDENT JOHNSON'S LANDMARK OPENHOUSING LEGISLATION PASSED IN 1968 ALMOST THREE YEARS AFTER THE INITIAL REJECTION OF HIS HOMERULE EFFORT BUT THE CENTRAL OBSERVATION IS CORRECT MR CLINTON WOULD LIKE TO SPEND EIGHT YEARS AT 1600 PENNSYLVANIA AVE AND IT MAY WELL BE THE NEXT 11 MONTHS THAT SET THE STAGE FOR A SUCCESSFUL OR UNSUCCESSFUL CLINTON PRESIDENCY MR MCPHERSON AND OTHER SAGES HAVE A CRITICAL BIT OF ADVICE FOR NEW PRESIDENTS AS THEY BEGIN THOSE CRUCIAL MONTHS MAINTAIN THE MORAL AUTHORITY OF THE OFFICE IT'S FINE TO TALK ABOUT USING THE PRESIDENCY AS A BULLY PULPIT HE NOTES BUT THAT WORKS ONLY IF THERE'S AN UNDERLYING MORAL FOUNDATION THE WAY TO PRESERVE SUCH AUTHORITY IS TO ADHERE STEADFASTLY TO PRINCIPLE COMPROMISE IS OF COURSE ESSENTIAL TO SUCCESSFUL GOVERNANCE BUT COMPROMISING ON MATTERS OF PRINCIPLE REFUSING TO GO DOWN IN FLAMES FOR SOMETHING ONE BELIEVES IN OR SELLING OUT THOSE PRINCIPLES FOR CHEAP AND TRANSITORY ADVANTAGE GUARANTEES FAILED GOVERNANCE A COROLLARY TO THIS RULE IS NEVER TO FORGET THAT THE OVAL OFFICE IS NOT ONLY A BULLY PULPIT BUT ALSO THE GREATEST TEACHING PODIUM EVER INVENTED A PRESIDENT AS EDUCATOR IS AN ESSENTIAL PART OF LEADERSHIP IN THE CURRENT CONTEST AS MR MCPHERSON PUTS IT BILL CLINTON IS GOING TO HAVE TO EXPLAIN TO THE PEOPLE THAT THEY CAN'T HAVE EVERYTHING THE ECONOMIC SUMMIT IN LITTLE ROCK WAS A WONDERFUL START BUT THERE'S A LOT THAT NEEDS TO BE DONE WITH THAT IN MIND HERE ARE SOME OF THE OPPORTUNITIES AND PITFALLS THAT INEVITABLY WILL CONFRONT THIS PRESIDENT PICK PRIORITIES THE ROLE MODELS HERE FOR WHAT TO DO AND WHAT NOT TO DO ARE MR REAGAN AND JIMMY CARTER PRESIDENT CARTER AT FIRST SEEMED TO HAVE A NEW PRIORITY WEEKLY ENERGY TAXES VOTER REGISTRATION HOSPITALCOST CONTAINMENT A CONSUMERPROTECTION AGENCY LABORLAW CHANGES THE PANAMA CANAL TREATIES THERE ARE SO MANY BALLS IN THE AIR OBSERVED THOMAS P O'NEILL THE HOUSE SPEAKER AT THE TIME THAT NOBODY KNOWS WHICH ONE IS GOING TO COME DOWN THAT DAY THE POLITICAL CURRENCY SOON WAS DEBASED IN GOING FOR SO MUCH THE CARTER ADMINISTRATION ENDED UP GETTING VERY LITTLE BY CONTRAST MR REAGAN HAD THREE PRIORITIES IN 1981 TAX CUTS DOMESTICSPENDING CUTBACKS AND A BEEFEDUP MILITARY HE PAID LIP SERVICE TO SUCH SOCIAL ISSUES AS ABORTION BUT ALMOST ALL OF HIS ENERGY AND POLITICAL CAPITAL WAS SPENT ON HIS THREE MAIN PROJECTS HE GOT ALMOST EVERYTHING HE REQUESTED CLEARLY MR CLINTON'S TOP PRIORITIES FLOW FROM THE NOW FAMOUS MOTTO HIS CAMPAIGN CHIEF JAMES CARVILLE POSTED OVER HIS DESK THE ECONOMY STUPID AND DON'T FORGET ABOUT HEALTH CARE BUT WHILE IT'S ESSENTIAL TO BE SELECTIVE IT'S DANGEROUS TO NEGLECT MEASURES THAT CAN COME BACK TO HAUNT YOU A PRIME EXAMPLE IF THE CLINTON ADMINISTRATION DOESN'T PUSH THROUGH AN OVERHAUL OF THE CURRENT SYSTEM OF FINANCING POLITICAL CAMPAIGNS BY THE FALL OF 1993 THAT POSSIBILITY WILL DIE AND WITH IT ANY HOPE OF CURBING THE INFLUENCE OF THE VESTED INTERESTS MOREOVER AS THE PRESIDENTELECT DISCOVERED DURING THE TRANSITION IT'S EASY TO SAY ONE'S PRIORITIES WILL BE PREDOMINATELY DOMESTIC ISSUES SOMETIMES THOUGH THE WORLD ISN'T VERY ACCOMMODATING DON'T FORGET POLITICS AGAIN MR CARTER IS THE ROLE MODEL HERE FOR WHAT NOT TO DO ONE OF THE BRIGHTEST MEN TO OCCUPY THE PRESIDENCY HE WAS A SKILLED POLITICIAN DURING THE 1976 CAMPAIGN WHEN HE GOT TO WASHINGTON HOWEVER HE TOO OFTEN VIEWED GOVERNANCE AS DISTINCT FROM POLITICS AND THE LATTER AS SOMETHING TO BE AVOIDED IT ISN'T THAT DOESN'T MEAN PRESIDENT CLINTON CAN'T TAKE UNPOPULAR POSITIONS OR GO AGAINST PREVAILING OPINION ANY PRESIDENT WHO DOESN'T TAKE SOME RISKS IS DESTINED FOR MEDIOCRITY BUT IF MR CLINTON DOESN'T REALIZE THAT HE HAS TO THINK CONSTANTLY ABOUT POLITICAL CONSENSUS CONSTITUENCY GROUPS KEEPING HIS POLITICAL BASE NERVOUS BUT SECURE AND EVEN THE NEXT ELECTION HE'S A ONETERMER STAY INSIDE AND OUTSIDE MORE THAN TWO DECADES AGO WHEN JOHN GARDNER FOUNDED COMMON CAUSE HE SAID THAT TO BE EFFECTIVE A CITIZENS' LOBBYING GROUP NEEDED CHARACTERISTICS OF BOTH INSIDERS AND OUTSIDERS THE INSIDEOUTSIDE ALLIANCE IS EQUALLY ESSENTIAL FOR A PRESIDENT THE PRESIDENCY IS MORE THAN BEING GOVERNOR OF ARKANSAS MULTIPLIED A HUNDRED TIMES THE DIFFERENCE IS ONE OF KIND NOT SIZE IF MR CLINTON CAN'T WORK WITH CONGRESS AND OTHER WASHINGTON POWER CENTERS THE GRIDLOCK THAT VOTERS REBELLED AGAINST LAST FALL WILL PERSIST IF ON THE OTHER HAND HE'S VIEWED AS A CAPTIVE OF THESE ESTABLISHED INTERESTS IT'S ANOTHER FORM OF BUSINESSASUSUAL AND JUST AS ONEROUS TO VOTERS THIS IS A DELICATE LINE TO WALK AND ONE THAT WILL SURELY TRY THE NEW PRESIDENT'S SKILLS AND METTLE AN IMPORTANT EARLY TEST WILL BE WHETHER THE PRESIDENT CAN WIN SOME FORM OF A LINEITEM VETO IN ORDER TO SHIFT SOME OF THE SPENDING CLOUT TO THE EXECUTIVE BRANCH IF NOT HE MAY HAVE A LONG FOUR YEARS ON FISCAL QUESTIONS DON'T OVERREACT TO POLLS AND THE PRESS IN LATE FEBRUARY 1991 A WALL STREET JOURNAL/NBC NEWS POLL SHOWED THAT AN ASTOUNDING 85 OF THE AMERICAN PUBLIC APPROVED OF THE JOB GEORGE BUSH WAS DOING SOME 20 MONTHS LATER HE MUSTERED JUST 38 OF THE POPULAR VOTE BECOMING ONLY THE THIRD ELECTED INCUMBENT IN THE PAST 60 YEARS TO LOSE THE PRESIDENCY CONVERSELY AT A COMPARABLE PERIOD EIGHT YEARS EARLIER MR REAGAN'S APPROVAL RATING WAS IN THE LOW 40S IN 1984 HE WON ONE OF THE BIGGEST LANDSLIDE VICTORIES IN HISTORY POLLS EVERYONE SAYS ARE MERELY SNAPSHOTS POLITICIANS AND PUNDITS HOWEVER ALL TOO OFTEN REGARD THEM WITH A REVERENCE USUALLY RESERVED FOR THE MONA LISA OBVIOUSLY IT'S BETTER TO BE DOING WELL IN POLLS BUT LOW POLL RATINGS FREQUENTLY CAN BE REVERSED JUST AS LOFTY STANDINGS CAN TUMBLE QUICKLY WITH A FEW BAD EVENTS THERE IS AN IMPORTANT LESSON HERE FOR THE NEW PRESIDENT WHEN YOU'RE RIDING HIGH IN THE POLLS CAPITALIZE ON IT IN MARCH OF 1991 AFTER THE WAR IN THE PERSIAN GULF MR BUSH COULD HAVE PARLAYED HIS POPULARITY INTO DECISIVE ACTION ON A SWEEPING DOMESTIC AGENDA INSTEAD HE PERFUNCTORILY ASKED FOR A TRANSPORTATION BILL AND A CRIME BILL AND NEVER REGAINED THAT HIGH GROUND AGAIN THE FLIP SIDE OF THIS IS THAT WHEN YOU'RE LOW IN THE POLLS DON'T TRY TO TURN THE NUMBERS AROUND OVERNIGHT AN INCUMBENT PRESIDENT HAS LOTS OF POLITICAL WEAPONS IF HE USES THEM SKILLFULLY AND PATIENTLY SIMILARLY DON'T BE SURPRISED WHEN THE INEVITABLE HONEYMOON WITH THE MEDIA SOURS IT ALWAYS HAS AND THIS PRESIDENCY WILL BE NO EXCEPTION THE RELATIONSHIP BETWEEN PRESIDENTS AND THE PRESS IS SYMBIOTIC BUT ALSO INHERENTLY ADVERSARIAL ANY PRESIDENT WHO DOESN'T UNDERSTAND THAT SUFFERS THROUGH MORE SLEEPLESS NIGHTS THAN NECESSARY FINALLY STAY IN TOUCH WITH PEOPLE WHO UNDERSTAND THAT MOST AMERICANS AREN'T PREOCCUPIED WITH WHETHER THE JUDICIARY COMMITTEE WILL CLEAR A JUDICIAL NOMINATION OR WHETHER THE ENVIRONMENTAL PROTECTION AGENCY WILL TOUGHEN A CERTAIN REGULATION OR WHETHER CHINA GETS FAVORABLE TRADE STATUS THE PRESIDENCY CAN BE A TERRIBLY ISOLATING EXPERIENCE WHEN MR CLINTON TALKS POLITICS THESE DAYS HE MORE OFTEN THAN NOT HARKS BACK NATURALLY TO SOME ANECDOTE OR OTHER TOLD BY A RURAL ARKANSAS POLITICIAN OVER THE PAST TWO DECADES THE WHITE HOUSE IS A LONG WAY FROM THE OZARKS BUT IF HE DOESN'T LOSE TOUCH WITH THOSE STORIES AND THOSE PEOPLE HE WILL MAKE THE DISTANCE MUCH SHORTER MR HUNT IS THE CHIEF OF THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200142 930120 WHO'S NEWS MACANDREWS & FORBES HODLINGS INC MACANDREWS & FORBES HOLDINGS INC NEW YORK BARRY F SCHWARTZ 43 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL A NEWLY CREATED POSITION AT THIS CONSUMER PRODUCTS FINANCIAL SERVICES PUBLISHING AND ENTERTAINMENT CONCERN MR SCHWARTZ WAS SENIOR VICE PRESIDENT AND CHIEF COUNSEL LITIGATION 9301200141 930120 INAUGURATION A SPECIAL REPORT FOREIGN FOCUS ANXIETY ABROAD EUROPEANS WORRY THAT THE US IS ABOUT TO SHIFT ITS FOCUS AND THAT GLOBAL INTERESTS WILL SUFFER BY TIMOTHY AEPPEL BONN IF IT WERE UP TO MANY EUROPEAN POLITICAL LEADERS THE US WOULDN'T BE INAUGURATING BILL CLINTON RIGHT NOW RATHER IT WOULD BE LAUNCHING THE SECOND TERM OF GEORGE BUSH MR BUSH WAS A KNOWN QUANTITY IN A WORLD WHERE FEW THINGS SEEM CONSTANT MR CLINTON BY CONTRAST IS VIEWED AS A NEWCOMER TO GLOBAL POLITICS WHOSE EMPHASIS ON REBUILDING THE US ECONOMY IS LIKELY TO KEEP AMERICA'S GAZE FIXED FIRMLY ON ITSELF SOME EUROPEAN OFFICIALS WORRY THAT THE US WILL TURN INWARD JUST WHEN THE GUIDING HAND OF A WESTERN SUPERPOWER IS BADLY NEEDED IN SUCH PLACES AS THE FORMER YUGOSLAVIA AND THE MIDDLE EAST THE US HAS TO GET ITS HOUSE IN ORDER ACKNOWLEDGES ONE GERMAN GOVERNMENT OFFICIAL BUT THIS CAN'T COME AT THE EXPENSE OF OTHER RESPONSIBILITIES WE HAVE TO FIGHT AGAINST THAT SINCE NOVEMBER EUROPEANS HAVE SPENT NEARLY AS MUCH TIME AS AMERICANS SCRUTINIZING MR CLINTON LOOKING FOR HINTS OF WHAT HIS LEADERSHIP MIGHT MEAN FOR THEM MOST HAVE CONCLUDED THAT A CLINTON ADMINISTRATION WILL STICK TO THE BROAD OUTLINES OF WASHINGTON'S EXISTING FOREIGN AND SECURITY POLICY NONETHELESS ANXIETY REMAINS ABOUT POTENTIAL SHIFTS IN FOCUS THAT COULD HARM EUROPEAN INTERESTS OR LEAD TO NEW CONFLICTS AMONG THE WORRIES IS A MOUNTING CONCERN OVER PROTECTIONISM SPURRED BY THREATENED US TARIFFS ON EUROPEAN AGRICULTURAL IMPORTS PROBABLY WE WILL SEE SOME DIFFICULT TIMES AHEAD IN ECONOMIC RELATIONS BOTH BETWEEN AMERICA AND EUROPE AND BETWEEN AMERICA AND JAPAN SAYS STEFANO SILVESTRI VICE PRESIDENT OF ROME'S INSTITUTE FOR INTERNATIONAL AFFAIRS HOWEVER HE CONCEDES CLINTON'S ACTIONS PROBABLY WILL NOT BE DIFFERENT FROM WHAT BUSH WOULD HAVE BEEN OBLIGED TO DO SOME EUROPEANS ALREADY SEE STATIC IN MR CLINTON'S TRANSATLANTIC RELATIONS WHEN GERMAN CHANCELLOR HELMUT KOHL CALLED MR CLINTON TO CONGRATULATE HIM ON HIS ELECTION VICTORY THE AIDE ANSWERING THE TELEPHONE IN ARKANSAS REPORTEDLY ANNOUNCED THAT HELMUT SOMEBODY WAS ON THE LINE GERMANS ACCUSTOMED TO REDCARPET TREATMENT IN WASHINGTON ARE WATCHING CLOSELY TO SEE IF THEIR PARTNER IN LEADERSHIP ROLE PUSHED HARD BY MR BUSH SINCE 1989 WILL DROP OFF THE AGENDA UNDER PRESIDENT CLINTON BONN IS ALSO WORRIED THAT A SURGE OF RIGHTWING VIOLENCE AND ANTISEMITIC VANDALISM IN GERMANY MAY UNDERCUT RELATIONS WITH WASHINGTON INDEED NOTES WERNER HOYER A MEMBER OF PARLIAMENT FOR THE FREE DEMOCRATS THE JUNIOR PARTNER IN BONN'S RIGHTOFCENTER COALITION MR CLINTON IS TAKING OVER THE WHITE HOUSE AT A TIME OF UNUSUAL STRAIN IN USGERMAN RELATIONS MR HOYER WAS RECENTLY IN WASHINGTON AND IN LITTLE ROCK ARK AND SAYS HE FOUND THE CLIMATE TOUGHER FOR GERMANY THAN HE HAS EVER SEEN BEFORE NOBODY WANTED TO TALK ABOUT GATT THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR THE ECONOMY HE SAYS THERE WAS ONLY ONE TOPIC THE NEONAZIS THE FRENCH TOO ARE NERVOUS ABOUT MR CLINTON THE PRESIDENTELECT OFFENDED FRANCOIS MITTERRAND PROBABLY UNINTENTIONALLY BY WAITING A WEEK BEFORE CALLING TO RESPOND TO THE FRENCH PRESIDENT'S CONGRATULATORY MESSAGE AFTER THE VOTE THE CALL WAS MADE THE SAME DAY MR CLINTON CALLED SAUDI ARABIA'S KING FAHD BUT THE FRENCH STILL INTERPRETED THE DELAY AS A SLAP FRENCH LEADERS HAVE MORE REASON THAN MOST TO WORRY LAST SUMMER FOREIGN MINISTER ROLAND DUMAS BROKE A RULE OF POLITICAL ETIQUETTE BY OPENLY EXPRESSING A FRENCH PREFERENCE FOR MR BUSH SOME FEAR THAT THIS PUT PARIS ON A BAD FOOTING WITH MR CLINTON THE FRENCH ALSO HAVE CAUSE TO FRET OVER MR CLINTON'S EMPHASIS ON REBUILDING THE US ECONOMY WHICH COULD TRANSLATE INTO A TOUGHER STANCE IN GLOBAL TRADE NEGOTIATIONS A STRONG NEW PRESIDENT WHO WANTS TO DEFEND AMERICAN INTERESTS WON'T TAKE ANYTHING FROM THE FRENCH AND WILL PUSH HARD FOR AN AGREEMENT IN TRADE TALKS ARGUES PEDRO SCHWARTZ OF NERA CONSULTORES DE ECONOMIA A MADRID CONSULTING FIRM A NUMBER OF ANALYSTS THOUGH BELIEVE THAT EUROPE'S ANXIETY OVER MR CLINTON WILL QUICKLY EVAPORATE AS EUROPEANS SEE FEW DRAMATIC CHANGES MADE YOU DON'T SEE PEOPLE PREPARING TO TURN EVERYTHING 180 DEGREES UNDER THE NEW ADMINISTRATION AS YOU DID WHEN CARTER TOOK OVER SAYS EDWINA CAMPBELL SENIOR EUROPEAN ANALYST AT EAGLE RESEARCH GROUP A WASHINGTON DC CONSULTING FIRM MS CAMPBELL ALSO ASSERTS THAT THE FEARS OF AMERICA'S TURNING INWARD ARE EXAGGERATED IF ANYTHING SHE SAYS THE EUROPEANS ARE LIKELY TO SEE CLINTON PUSHED TOWARD GETTING MORE INVOLVED IN SOME FOREIGN MATTERS SUCH AS YUGOSLAVIA TO BE SURE TROOP REDUCTIONS WILL CONTINUE AND COULD CUT DEEPER THAN ENVISIONED BY MR BUSH AND LEADING REPUBLICANS IN CONGRESS AND MR CLINTON HAS SAID HE COULD ACCEPT A DROP IN US TROOP LEVELS IN EUROPE WHICH CURRENTLY STAND AT MORE THAN 200000 PERSONNEL TO BELOW 100000 BUT THE PRESIDENTELECT IS NOT EXPECTED TO ALTER WASHINGTON'S FUNDAMENTAL STRATEGIC COMMITMENT TO EUROPE I AM VERY CERTAIN THAT AMERICA WILL CONTINUE TO SEE AND PROTECT ITS SECURITY RESPONSIBILITIES AND ITS OWN SECURITY INTERESTS PREDICTS GERMAN FOREIGN MINISTER KLAUS KINKEL FOR HIS PART MR SILVESTRI THE ROMEBASED ANALYST POINTS OUT THAT SOME ISOLATIONISM ON THE PART OF THE US WOULDN'T BE DISASTROUS FORTUNATELY HE SAYS THE RUSSIANS ARE NOT COMING MR SILVESTRI RECOGNIZES THAT MR CLINTON'S FOCUS ON THE DOMESTIC ECONOMY WILL NATURALLY LEAD TO REDUCTIONS IN THE US MILITARY PRESENCE OVERSEAS BUT HE NOTES AS WELL THAT THIS WILL ALSO SHIFT THE RELATIONSHIP BETWEEN THE US AND ITS ALLIES SINCE THE US WILL BE DROPPING ITS CLEAR LEADERSHIP ROLE IN FAVOR OF SOMETHING CLOSER TO A PARTNERSHIP MORE WORRISOME THAN TROOP LEVELS TO MANY EUROPEANS THOUGH IS HOW MR CLINTON WILL HANDLE THE US ECONOMY AND INCREASINGLY EXPLOSIVE TRADE RELATIONS SOME WORRY THAT AS A DEMOCRAT THE NEW PRESIDENT WILL GET PRESSURED INTO ENDORSING PROTECTIONIST POLICIES BY A DEMOCRATIC CONGRESS EAGER TO SALVAGE DOMESTIC JOBS EUROPEAN COMMUNITY OFFICIALS HOPE THAT THE CLINTON ADMINISTRATION WILL TRY TO SUCCESSFULLY CONCLUDE THE SOCALLED URUGUAY ROUND OF GATT TRADE TALKS PRIOR TO IMMERSING ITSELF IN DOMESTIC ECONOMIC ISSUES THERE IS GOOD REASON FOR MR CLINTON TO TRY TO WRAP UP THESE TALKS QUICKLY BEFORE TURNING TO THE DOMESTIC ECONOMIC AGENDA ONE EC OFFICIAL SAYS THE DANGER HE EXPLAINS IS THAT A DOMESTIC RECOVERY WILL SUCK IN IMPORTS RESULTING IN SOARING TRADE DEFICITS THAT WOULD IN TURN TRIGGER MOVES TO PROTECT DOMESTIC INDUSTRY AND ANY PROTECTIONIST MOVES WOULD LEAD TO TRADE FRICTION WITH THE EC WHICH IS ALREADY SHAKEN BY FRANCE'S FIERCE OPPOSITION TO TRADE LIBERALIZATION MEASURES BEING NEGOTIATED IN GENEVA US RELUCTANCE AT THIS STAGE MIGHT WELL KILL THE CURRENT TALKS BUT IF THE US AND ITS TRADE PARTNERS COMMIT THEMSELVES TO A NEW SET OF RULES IN THE URUGUAY ROUND UNDER GATT THEN PROTECTIONIST PRESSURE COULD BE RESISTED ACCORDING TO EUROPEAN OFFICIALS DAVID ROCHE FOR ONE DOESN'T EXPECT MR CLINTON TO BE PARTICULARLY REVOLUTIONARY IN HIS ECONOMIC POLICIES AS CHIEF EUROPEAN STRATEGIST AT MORGAN STANLEY IN LONDON HE FORESEES MR CLINTON HELPING CHINA TO JOIN THE GLOBAL TRADING SYSTEM AS PART OF A PROCESS OF TRYING TO LINK CHINA EVER MORE CLOSELY TO THE WESTERN WORLD DOMESTICALLY MR ROCHE SAYS PRESIDENT CLINTON WILL NEED TO CONCENTRATE MORE RESOURCES ON INFRASTRUCTURE PROGRAMS AN AREA IN WHICH HIS ROOM FOR MANEUVER IS LIMITED FINANCIALLY STILL MR CLINTON MAY WELL PRESIDE OVER A RECOVERY IN THE US ECONOMY FOR WHICH HE WILL THEN BE ABLE TO CLAIM CREDIT HE MAY SAYS MR ROCHE BE THE LUCKY PRESIDENT BEYOND THE ECONOMIC CONCERNS SOME EUROPEANS SEE POLITICAL IMPLICATIONS FOR THEMSELVES IN AMERICA'S VOTE FOR CHANGE CHANCELLOR KOHL AND HIS CONSERVATIVE CHRISTIAN DEMOCRATS WERE CLOSELY IDENTIFIED WITH THE REAGANBUSH ERA AND THE REPUBLICANS IN THE WAKE OF THE US VOTE MANY CRITICS IN BONN SAID GERMANY WAS ALSO HEADING TOWARD A SHIFT IN POWER MEANWHILE THE FRENCH WITH THEIR SOCIALIST GOVERNMENT ALSO SEE RAMIFICATIONS FOR THEMSELVES IN MR CLINTON'S ELECTION PRIME MINISTER PIERRE BEREGOVOY AND FINANCE MINISTER MICHEL SAPIN QUICKLY DUBBED MR CLINTON'S VICTORY A DEFEAT FOR REAGANSTYLE FREEMARKET LIBERALISM AND A BOOST FOR FRENCHSTYLE INDUSTRIALPOLICY THEORIES NONE OF THE FRENCH POLITICIANS SEEMED TO NOTICE MR CLINTON'S STRONG FREEMARKET CAMPAIGN RHETORIC SOME FRENCH LEADERS EVEN SEE MR CLINTON'S VICTORY AS A SIGN THAT THEY MIGHT WIN THE NEXT ROUND OF LEGISLATIVE ELECTIONS SLATED FOR MARCH ALTHOUGH A SOCIALIST DEFEAT IS STILL CONSIDERED LIKELY CLINTON IS A BIT FRIGHTENING GRUMBLES FRENCH FREEMARKETEER ALAIN MADELIN WHO SERVED AS INDUSTRY MINISTER DURING FRANCE'S 198688 CENTERRIGHT GOVERNMENT MR CLINTON'S ELECTION HE DECLARES PORTENDS ONLY A BIT MORE PUBLIC SPENDING A BIT MORE TAXES A BIT MORE REGULATION MR AEPPEL IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S BONN BUREAU 9301200140 930120 INAUGURATION A SPECIAL REPORT THE ISSUES A RADICAL CURE BILL CLINTON'S PROPOSAL TO REVAMP THE HEALTHCARE SYSTEM IS BOTH EXTREME AND UNTRIED BY HILARY STOUT NO OTHER COUNTRY HAS TRIED WHAT BILL CLINTON IS ABOUT TO ATTEMPT IN THE AREA OF HEALTH CARE WITHIN THE NEXT 100 DAYS BY MAY 1 PRESIDENT CLINTON HAS PROMISED TO PRESENT CONGRESS WITH A PLAN THAT WILL GUARANTEE EVERY AMERICAN ACCESS TO MEDICAL CARE AND ALSO CONSTRAIN THE ESCALATING COSTS THAT HAVE CRIPPLED THE CURRENT HEALTH SYSTEM VIRTUALLY EVERY OTHER INDUSTRIALIZED NATION ALREADY HAS UNIVERSAL HEALTH COVERAGE FOR ITS CITIZENRY AND ALL OF THEM SPEND LESS PER CAPITA ON CARE THAN DOES THE US WHERE SOME 35 MILLION PEOPLE STILL LACK HEALTH INSURANCE BUT MR CLINTON ISN'T TAKING MANY CUES FROM THE REST OF THE WORLD THE SOCALLED MANAGEDCOMPETITION APPROACH THAT WILL SERVE AS THE FOUNDATION OF PRESIDENT CLINTON'S HEALTH PROPOSAL SEEKS TO REPAIR AND PRESERVE THE NATION'S PRIVATE EMPLOYERBASED HEALTHINSURANCE SYSTEM THE GOVERNMENT WOULD BECOME A BIGGER PLAYER UNDER MR CLINTON'S PLAN POSSIBLY SETTING LIMITS ON OVERALL HEALTH SPENDING AT THE CORE OF THE PROPOSAL THOUGH IS A COMPLEX UNTRIED PLAN TO SET UP LARGE NETWORKS OF HEALTHINSURANCE PURCHASERS COMPRISING BUSINESSES AND INDIVIDUALS FOR WHOSE PATRONAGE INSURANCE COMPANIES HEALTHMAINTENANCE ORGANIZATIONS AND OTHER HEALTHCARE PROVIDERS WOULD COMPETE WITH CAREFUL OVERSIGHT BY THE GOVERNMENT SUCH COMPETITION IS EXPECTED TO BRING INCREASED QUALITY EFFICIENCY ACCESS AND COMPETITIVE PRICES TO THE SYSTEM PROPONENTS ARE UNFAZED BY THE LACK OF AN INTERNATIONAL MODEL FOR THE IDEA I CAN'T PROVE TO YOU THE MARKET WILL WORK BUT IT'S WORTH A SHOT SAYS MICHAEL BROMBERG CHIEF LOBBYIST FOR THE FEDERATION OF AMERICAN HEALTH SYSTEMS AN ASSOCIATION OF PRIVATE FORPROFIT HEALTHCARE INSTITUTIONS THE MARKET WORKS IN EVERY OTHER WALK OF LIFE MOST COUNTRIES DO IT A SIMPLER WAY THEY COLLECT TAXES FROM THE PEOPLE AND BUSINESSES AND THEN USE THE MONEY TO PAY FOR MEDICAL CARE FOR EVERYONE AS THE SOLE BUYER OF CARE THE GOVERNMENT SETS HOSPITAL BUDGETS AND IN SOME CASES EVEN CONTROLS THE NUMBER OF PEOPLE ENTERING THE FIELD OF MEDICINE OR DECIDES WHICH TECHNOLOGIES A PHYSICIAN OR HOSPITAL IS ALLOWED TO BUY THE RESULT UNIVERSAL ACCESS AND CONTAINED COSTS CANADA BRITAIN FRANCE DENMARK SWEDEN AND A NUMBER OF OTHER COUNTRIES ALL HAVE SUCH GOVERNMENTFINANCED NATIONAL HEALTHINSURANCE SYSTEMS HOWEVER THE STRUCTURE AND PATIENT FLEXIBILITY CAN VARY WIDELY AMONG THEM IN CANADA FOR EXAMPLE EVERYONE CAN GO TO THE DOCTOR AND HOSPITAL OF HIS OR HER CHOICE PHYSICIANS HOSPITALS AND OTHER CARE PROVIDERS OPERATE IN THE PRIVATE SECTOR THE GOVERNMENT SIMPLY PAYS THE BILL PRIVATE INSURANCE IS ALLOWED TO BE SOLD TO COVER THINGS THAT THE GOVERNMENT WON'T PAY FOR SUCH AS PRIVATE HOSPITAL ROOMS OR PRESCRIPTION DRUGS THE FEDERAL AND PROVINCIAL GOVERNMENTS SHARE THE COSTS FINANCING THE SYSTEM PRIMARILY THROUGH TAXES TO KEEP THOSE COSTS IN LINE THE GOVERNMENT DETERMINES THE HOSPITALS' BUDGETS AND REGULATES BOTH THE TECHNOLOGY THEY MAY HAVE AND THE PRICES OF PHYSICIAN SERVICES THE BRITISH ON THE OTHER HAND RUN A SYSTEM OF SOCIALIZED MEDICINE DOCTORS DENTISTS AND OTHER HEALTHCARE PROFESSIONALS ARE EMPLOYEES OF THE STATE WHICH OWNS AND OPERATES MORE THAN 2000 HOSPITALS NATIONWIDE THIS FEDERAL NATIONAL HEALTH SERVICE OFFERS FREE CRADLETOGRAVE MEDICAL CARE TO ALL BRITONS AND FINANCES IT MOSTLY THROUGH GENERAL TAXATION EACH PERSON ENROLLS WITH A GENERAL PRACTITIONER WHO DETERMINES WHEN AND WHETHER TO SEND THE PATIENT TO A SPECIALIST A GROWING MARKET OF PRIVATE HOSPITALS AND COMMERCIAL INSURERS HAS SPRUNG UP FOR PEOPLE SEEKING CARE OUTSIDE THE NHS THEY COMPETE ON PRICE AND QUALITY WITH SOME DOCTORS AND FACILITIES ACTUALLY ADVERTISING THEIR PRICES FOR VARIOUS PROCEDURES MR CLINTON WANTS TO BORROW FROM PART OF THESE COUNTRIES' SYSTEMS PROPOSING A CAP OR AT LEAST A TARGET FOR NATIONAL HEALTH EXPENDITURES BUT BECAUSE THE GOVERNMENT WOULDN'T BE THE SOLE PURCHASER OF CARE MANY ADVOCATES OF A SINGLEPAYER SYSTEM CONTEND THAT SUCH A CEILING WOULD BE NEARLY IMPOSSIBLE TO ENFORCE AT THE OTHER END OF THE IDEOLOGICAL SPECTRUM PROPONENTS OF A FREE MARKET SAY THAT IMPOSING A LIMIT ON EXPENDITURES WOULD SEVERELY HINDER MARKET FORCES WHILE NO ONE HAS TRIED AS RADICAL A RESUSCITATION OF THE PRIVATE HEALTHCARE MARKET AS MR CLINTON IS LIKELY TO PROPOSE SOME COUNTRIES HAVE SUCCESSFULLY MAINTAINED A PRIVATE DIMENSION TO THEIR SYSTEMS AND STILL MANAGED TO ACHIEVE NEAR UNIVERSAL ACCESS AND COST CONTROLS JAPAN FOR EXAMPLE RELIES ON EMPLOYERS TO PICK UP MUCH OF THE BURDEN OF PROVIDING HEALTH CARE REQUIRING THEM TO CONTRIBUTE TO THE COST OF HEALTH INSURANCE FOR THEIR EMPLOYEES THE CONTRIBUTIONS ARE MADE THROUGH A PAYROLL TAX THAT IS SHARED BY EMPLOYER AND EMPLOYEE MUCH AS THE SOCIAL SECURITY PAYROLL TAX IS SHARED IN THE US THE UNEMPLOYED SELFEMPLOYED AND ELDERLY ARE COVERED BY GOVERNMENTFINANCED HEALTH INSURANCE LARGE EMPLOYERS ARE PERMITTED TO SET UP THEIR OWN HEALTHINSURANCE SOCIETIES FOR THEIR EMPLOYEES SMALLER COMPANIES MUST ENROLL THEIR WORKERS IN THE GOVERNMENTRUN HEALTHINSURANCE PLAN PHYSICIANS' FEES ARE SET JOINTLY BY THE GOVERNMENT AND A COUNCIL THAT INCLUDES REPRESENTATIVES OF INSURERS CARE PROVIDERS AND CONSUMERS GERMANY TOO COUNTS ON EMPLOYERS TO HELP COVER MOST OF THE POPULACE EVERYONE EARNING BELOW A CERTAIN LEVEL IS REQUIRED TO OBTAIN COVERAGE THROUGH A NETWORK OF INSURANCE PLANS KNOWN AS SICKNESS FUNDS WITH THE NETWORK ITSELF FINANCED BY BOTH EMPLOYER AND EMPLOYEE PAYROLL TAXES THAT THE FUNDS COLLECT THE SIZE OF THE PAYROLL TAX VARIES ACCORDING TO EACH FUND ACCORDING TO LAURENE GRAIG AUTHOR OF A BOOK ON INTERNATIONAL HEALTH SYSTEMS THE AVERAGE EMPLOYEREMPLOYEE CONTRIBUTION IS 13 OF THE EMPLOYEE'S SALARY THE GOVERNMENT PAYS THE BILL FOR THOSE WHO AREN'T EMPLOYED GERMANS MAKING MORE THAN A CERTAIN AMOUNT ANNUALLY THE EQUIVALENT OF ABOUT 41000 IN THE WESTERN STATES AND 30000 IN THE EASTERN STATES HAVE THE OPTION OF BUYING PRIVATE INSURANCE OR JOINING THE GOVERNMENTMANAGED SICKFUND SYSTEM THE FUNDS NEGOTIATE FEES WITH DOCTORS HOSPITALS AND OTHER PROVIDERS THE GOVERNMENT SETS A CEILNG ON OVERALL PAYMENTS TO DOCTORS IF PHYSICIAN BILLINGS EXCEED THE LIMIT THEIR FEES ARE REDUCED THE NEXT YEAR HOSPITALS ARE PAID A PER DIEM RATE SET IN NEGOTIATIONS SOME ECONOMISTS AND OTHER OBSERVERS OF THE HEALTH FIELD FEEL THAT MR CLINTON MIGHT FIND THE MOST USEFUL MODEL IN THE NETHERLANDS THE COUNTRY HAS LONG HAD A HIGHLY REGULATED SYSTEM IN WHICH MOST CITIZENS ARE COVERED BY A PUBLIC INSURANCE PROGRAM PAID FOR BY EMPLOYER AND EMPLOYEE CONTRIBUTIONS PEOPLE WHOSE INCOME EXCEEDS A CERTAIN THRESHOLD A GROUP THAT INCLUDES ABOUT ONETHIRD OF THE POPULATION ARE REQUIRED TO BUY INSURANCE PRIVATELY THE GOVERNMENT REGULATES EVERYTHING FROM DOCTORS' FEES TO HOW MANY PEOPLE PRACTICE IN CERTAIN REGIONS OF THE COUNTRY IN 1990 A PANEL KNOWN AS THE DEKKER COMMISSION HEADED BY THE CHAIRMAN OF PHILIPS ELECTRONICS NV ISSUED A REPORT THAT CALLED ON THE COUNTRY TO MOVE AWAY FROM HEAVY GOVERNMENT CONTROL OF THE HEALTH SECTOR AND LAID OUT A PLAN TO BRING MORE COMPETITION TO THE SYSTEM IT INCORPORATED SOME OF THE IDEAS OF ALAIN ENTHOVEN A STANFORD UNIVERSITY ECONOMIST WHO IS ONE OF THE CHIEF ARCHITECTS OF THE MANAGEDCOMPETITION APPROACH EMBRACED BY MR CLINTON THE NEW DUTCH PLAN IS EXPECTED TO BE IMPLEMENTED IN THE MID1990S IT WOULD ADDRESS AND UTILIZE CONCEPTS OF MANAGED COMPETITION WHERE INDIVIDUALS WOULD CHOOSE AMONG COMPETING HEALTHINSURANCE ORGANIZATIONS WHICH WOULD BE FIGHTING IT OUT TO CONTAIN COSTS AND PROVIDE QUALITY CARE SAYS WARREN GREENBERG A PROFESSOR OF HEALTH ECONOMICS AT GEORGE WASHINGTON UNIVERSITY WHO HAS STUDIED THE DUTCH SYSTEM THE PROPOSED SYSTEM WHICH HAS BEEN APPROVED BY THE CURRENT GOVERNMENT WOULD REQUIRE EVERYONE TO PAY AN INCOMEADJUSTED PREMIUM INTO A CENTRAL GOVERNMENT INSURANCE FUND HMOS AND OTHER HEALTH INSURERS WOULD COMPETE FOR THE BUSINESS OF PEOPLE IN THE FUND EVERYONE WOULD BE ALLOWED TO CHOOSE HIS OR HER OWN PLAN MS STOUT IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200139 930120 WHO'S NEWS POLARIS INDUSTRIES PARTNERS LIMITED PARTNERSHIP POLARIS INDUSTRIES PARTNERS LIMITED PARTNERSHIP MINNEAPOLIS MICHAEL MALONE 34 YEARS OLD FORMERLY ASSISTANT TREASURER WAS NAMED CHIEF FINANCIAL OFFICER AND TREASURER OF THIS MAKER OF SNOWMOBILES ALLTERRAIN VEHICLES AND PERSONAL WATER CRAFT SUCCEEDING BOB MOE WHO RETIRED 9301200138 930120 PEROT CLARIFIES HIS REMARK ABOUT IBM TO LARRY KING NEW YORK ROSS PEROT WANTS IT KNOWN THAT HE LOVES INTERNATIONAL BUSINESS MACHINES CORP BUT DOESN'T WANT TO RUN IT MR PEROT SAID HE MEANT TO OFFER AN EXPRESSION OF AFFECTION FOR IBM NOT NOMINATE HIMSELF FOR MR AKERS'S JOB I JUST WANT TO MAKE SURE YOU UNDERSTAND I'M NOT A CANDIDATE FOR CHAIRMAN OF IBM HE SAID I WOULDN'T EVEN HINT THAT I SHOULD BE THE CHAIRMAN OF IBM MR PEROT BEGAN HIS CAREER AT THE ARMONK NY COMPUTER COMPANY IBM WAS THE DELTA TEAM SPECIAL FORCES IT WAS JUST A PURE JOY TO BE THERE HE RECALLED HE DECLINED TO DISCUSS IBM'S CURRENT CRISIS IN ANY DETAIL BUT LOOKING BACK HE SAID THE COMPANY'S ANTITRUST BATTLES WITH THE US GOVERNMENT WERE THE MOST SERIOUS THING THAT HAPPENED AT IBM HE SAID THEY HANDICAPPED IBM BY FORCING IT TO DO BUSINESS WITH BOTH FEET FIXED IN CONCRETE AND YOU HAVE TO CHECK WITH A FEDERAL JUDGE BEFORE YOU COME TO WORK 9301200137 930120 WHO'S NEWS BANK OF NOVA SCOTIA BANK OF NOVA SCOTIA TORONTO PETER C GODSOE PRESIDENT WAS NAMED TO THE ADDITIONAL POSTS OF CHIEF EXECUTIVE OFFICER AND DEPUTY CHAIRMAN MR GODSOE 54 SUCCEEDS CEDRIC E RITCHIE 65 AS CHIEF EXECUTIVE OFFICER MR RITCHIE WHO IS RETIRING FROM THE POSITION AFTER 21 YEARS REMAINS CHAIRMAN MR GODSOE WHO HAS BEEN VICE CHAIRMAN SINCE 1982 BECAME PRESIDENT AND CHIEF OPERATING OFFICER IN JANUARY 1992 NO REPLACEMENT HAS BEEN NAMED FOR THE POSITION OF CHIEF OPERATING OFFICER BRUCE R BIRMINGHAM WAS NAMED VICE CHAIRMAN IN OCTOBER 9301200136 930120 LAW ALTMAN'S LAWYERS UNVEIL A STRATEGY FOR BCCI TRIAL BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ROBERT ALTMAN'S ATTORNEYS UNVEILED SOME OF THEIR STRATEGY FOR THE FORTHCOMING NEW YORK TRIAL OF THE WASHINGTON LAWYER GUSTAVE NEWMAN COUNSEL FOR MR ALTMAN SAID DURING HIS CROSSEXAMINATION OF FORMER SENIOR BCCI OFFICIAL KHALID SHARIH THAT THE DEFENSE WAS SEEKING TO SHOW THAT BCCI'S STRATEGY IN THE US WAS TO HOLD SECRETS CLOSELY WITHIN THE TOP MANAGEMENT OF THE PAKISTANIMANAGED BANK AND TO KEEP AMERICANS AT ARM'S LENGTH THIS IMPLIES THAT SENIOR OFFICERS OF BCCI HOLDINGS LUXEMBOURG SA KEPT MR ALTMAN IN THE DARK ABOUT ITS SECRET ILLEGAL OWNERSHIP OF FIRST AMERICAN BANKSHARES INC AND OTHER US FINANCIAL INSTITUTIONS UNTIL BANKING REGULATORS DISCOVERED IT IN 1991 MR ALTMAN WHO ACTED AS US COUNSEL FOR BCCI'S BANK OF CREDIT & COMMERCE INTERNATIONAL AND FIRST AMERICAN HAS DENIED BANK FRAUD AND CONSPIRACY CHARGES BROUGHT AGAINST HIM BY A NEW YORK STATE GRAND JURY BCCI WAS SEIZED BY REGULATORS WORLDWIDE JULY 5 1991 AFTER IT BECAME CLEAR THAT BILLIONS OF DOLLARS OF DEPOSITORS' MONEY HAD BEEN LOOTED BANK REGULATORS AND GOVERNMENT INVESTIGATORS HAVE DETERMINED THAT BCCI SECRETLY AND ILLEGALLY OWNED FIRST AMERICAN WHERE MR ALTMAN ALSO SERVED AS PRESIDENT OF ONE OF THAT BANK'S MAJOR UNITS MR NEWMAN WAS CROSSEXAMINING MR SHARIH WHO WAS TESTIFYING BEFORE THE SCHEDULED FEB 16 TRIAL OF MR ALTMAN MR SHARIH'S TESTIMONY WAS GIVEN PRIOR TO THE TRIAL BECAUSE HE IS SUFFERING FROM LUNG CANCER THE DEFENSE ATTORNEY ALSO SOUGHT TO UNDERMINE MR SHARIH'S EARLIER TESTIMONY TO THE PROSECUTION UNDER QUESTIONING FROM MR NEWMAN MR SHARIH ACKNOWLEDGED THAT NOBODY IN BCCI'S TOP MANAGEMENT HAD SPECIFICALLY TOLD HIM THAT A GROUP OF ARAB BUSINESSMEN WHO NOMINALLY HELD SHARES IN FIRST AMERICAN WERE FRONT MEN FOR BCCI MR SHARIH ASSERTED EARLIER IN HIS TESTIMONY THAT IT WAS COMMONLY UNDERSTOOD WITHIN BCCI THAT FIRST AMERICAN AND NATIONAL BANK OF GEORGIA WERE PART OF THE BCCI FAMILY AND THAT THE NOMINAL INVESTORS IN THESE COMPANIES WERE FRONT MEN FOR BCCI THIS RELATIONSHIP BETWEEN BCCI AND ITS US COMPANIES HAD BEEN MADE CLEAR IN MEETINGS WHERE MR ALTMAN WAS PRESENT MR SHARIH ALLEGED MR NEWMAN ALSO TRIED TO GET MR SHARIH TO DESCRIBE THE ENMITY THAT HE AND SOME OTHER BCCI OFFICIALS ALLEGEDLY FELT FOR ABDUR SAKHIA ANOTHER SENIOR BCCI OFFICIAL WHO SUCCESSIVELY MANAGED BCCI'S MIAMI AND NEW YORK OFFICES MR SAKHIA IS EXPECTED TO BE AN IMPORTANT PROSECUTION WITNESS 9301200135 930120 THEY'RE ALWAYS CHASING RAINBOWS AND SEEKING A SMALL POT OF GOLD BY CHARLES GOLDSMITH STAFF REPORTER OF THE WALL STREET JOURNAL IT'S A TALE OF YANKEES NOT WELCOMED IN A FISHY FASHION BRITISH TROUTFISHING AFICIONADOS JUST LOVE THE NATIVE BROWN TROUT IT'S CHALLENGING TO CATCH AND OHSO TASTY TO EAT BUT IN A COURT CASE DUE FOR DECISION EARLY NEXT MONTH AN ANGLERS' GROUP COMPLAINS THAT THE ANCIENT SPORT OF BROWNTROUT FISHING IS BEING JEOPARDIZED BY THE ESCAPE OF RAINBOW TROUT WHICH ORIGINATED IN THE US INTO A STRETCH OF RIVER IN WILTSHIRE WEST OF LONDON FISHERMEN SEEKING TO LAND A WILY 16INCH BROWN TROUT ARE EXASPERATED BY CATCHING RAINBOW AFTER RAINBOW JUST THREE OR FOUR INCHES LONG ACCORDING TO THE LAWSUIT FILED IN SWINDON CROWN COURT THERE ARE ANGLERS PREPARED TO PAY CONSIDERABLE SUMS OF MONEY TO CATCH THE NATIVE BROWN TROUT BUT THEY ARE NOT PREPARED TO PAY VERY MUCH AT ALL TO CATCH ESCAPEE RAINBOW TROUT SAYS ALLEN EDWARDS DIRECTOR OF THE ANGLERS COOPERATIVE ASSOCIATION A LITTLE RAINBOW CONSTANTLY NIPS UP TO SEIZE A DRY FLY AND THE GUY'S FISHING IS RUINED THE COURT CASE IS HARDLY A WHOPPER THE ANGLERS' GROUP SEEKS 10500 POUNDS 16285 IN DAMAGES ON BEHALF OF A FISHING CLUB FROM A TROUT FARM ALLEGED TO HAVE ALLOWED THOUSANDS OF RAINBOWS TO ESCAPE FROM ITS PONDS INTO THE KENNET RIVER BUT CONSERVATION OFFICIALS BELIEVE THAT A COURT RULING IN FAVOR OF THE ANGLERS COULD HOLD FAR BROADER SIGNIFICANCE IF THE COURT FINDS THAT THE RIVER WAS EFFECTIVELY POLLUTED BY RAINBOW TROUT IT BRINGS INTO DOUBT WHETHER THEY SHOULD BE STOCKED IN MANY OF OUR RIVERS EXPLAINS NICK GILES DIRECTOR OF WETLANDS RESEARCH AT THE GAME CONSERVANCY A PRIVATE ORGANIZATION THE ANGLERS' GROUP CLAIMS THAT THE RAINBOWS DRIVE THE BROWN TROUT AWAY FROM SPAWNING GROUNDS BY EATING THEIR FOOD IF SUCCESSFUL IN SWINDON THE GROUP SAYS IT HAS TWO CASES FROM THE NORTH OF ENGLAND THAT IT PLANS TO LITIGATE IT'S ENTIRELY REASONABLE SAYS MR GILES TO QUESTION WHETHER WE SHOULD BE RELEASING LARGE AMOUNTS OF ALIEN SPECIES INTO OUR RIVERS WHEN WE REALLY DON'T KNOW THE EFFECT ON OUR NATIVE SPECIES THE BRITISH TROUT ASSOCIATION WHICH REPRESENTS TROUT FARMS SAYS CLAIMS OF ENVIRONMENTAL DAMAGE CAUSED BY ESCAPED RAINBOW TROUT ARE MUCH EXAGGERATED BECAUSE THEY RARELY BREED IN THE WILD AND THEREFORE SELDOM ESTABLISH SELFSUSTAINING POPULATIONS 9301200134 930120 TECHNOLOGY ESCAGENETICS FORMS ALLIANCE TO INCREASE PRODUCTION OF TAXOL SAN CARLOS CALIF ESCAGENETICS CORP AN AGRICULTURAL BIOTECHNOLOGY COMPANY SAID IT FORMED AN ALLIANCE WITH GENENCOR INTERNATIONAL INC TO BUILD COMMERCIALSCALE PRODUCTION OF THE CANCER DRUG TAXOL NEXT YEAR THIS IS JUST THE LATEST IN A SPATE OF CORPORATE AND SCIENTIFIC EFFORTS TO FIND ALTERNATIVE WAYS TO MANUFACTURE THE ENVIRONMENTALLY SENSITIVE PRODUCT WHICH IS DERIVED FROM BARK HARVESTED FROM THE RARE PACIFIC YEW TREE CURRENTLY MANUFACTURED BY BRISTOLMYERS SQUIBB CO TAXOL WAS APPROVED BY THE FOOD AND DRUG ADMINISTRATION FOR THE TREATMENT OF ADVANCED OVARIAN CANCER WHICH KILLS 13000 US WOMEN EACH YEAR INSTEAD OF HARVESTING TREES ESCAGENETICS USES YEW TREE CELLS CULTURED IN FERMENTATION VATS TO CHURN OUT TAXOL ITS COLLABORATION WITH GENENCOR A ROCHESTER NY SPECIALIST IN LARGESCALE FERMENTATION AIMS TO ESCALATE TAXOL PRODUCTION TO 30000LITER VATS TWO YEARS AGO EXPERIMENTAL SUPPLIES OF TAXOL WERE TIGHTLY RATIONED LEAVING SOME PATIENTS WITHOUT THE DRUG BRISTOLMYERS SAYS IT IS NOW MEETING DEMAND THROUGH A YEW HARVEST THAT TOTALED 825000 POUNDS OF BARK IN 1992 HALF OF THAT FROM FEDERAL LANDS THE COMPANY IS ALSO DEVELOPING PRODUCTION FROM RENEWABLE SOURCES SUCH AS NEEDLES AND TWIGS RAYMOND MOSHY PRESIDENT OF ESCAGENETICS SAYS HIS PRODUCT OFFERS A LOWERCOST ALTERNATIVE TO BARKDERIVED TAXOL NOW PRICED BY BRISTOL AT 695 TO 986 PER TREATMENT CYCLE INDIVIDUAL PATIENT NEEDS CAN VARY FROM TWO TO SIX CYCLES OF THE DRUG BRINGING THE COST AS HIGH AS 6000 PER TREATMENT 9301200133 930120 TECHNOLOGY BRIEF UPJOHN CO CIBAGEIGY UNIT TO MARKET GENERIC VERSIONS OF 2 DRUGS UPJOHN CO SAID IT AGREED TO ALLOW GENEVA PHARMACEUTICALS INC A UNIT OF CIBAGEIGY CORP TO MARKET THE GENERIC VERSIONS OF UPJOHN'S XANAX TRANQUILIZER AND HALCION SLEEPING PILL TERMS WERE NOT DISCLOSED XANAX AND HALCION ARE SET TO LOSE PATENT PROTECTION AT YEAR'S END XANAX IS UPJOHN'S NO 1 SELLING DRUG WORLDWIDE HALCION WAS ONCE UPJOHN'S SECONDBIGGEST SELLER UNTIL INTENSE CRITICISM OVER ITS USE HAMMERED SALES NOW HALCION RANKS NO 6 IN THE KALAMAZOO MICH PHARMACEUTICAL CONCERN'S PRODUCT LINEUP CRITICS CLAIM USERS OF HALCION EXPERIENCED A HIGHER INCIDENCE OF ADVERSE REACTIONS SUCH AS ANXIETY BIZARRE AND AGGRESSIVE BEHAVIOR CONFUSION AND PARANOIA THAN USERS OF OTHER BENZODIAZEPINE SLEEP MEDICATIONS GENEVA PHARMACEUTICALS BROOMFIELD COLO IS A MAKER AND MARKETER OF GENERIC PHARMACEUTICAL PRODUCTS IN THE US 9301200132 930120 WHO'S NEWS MEDICAL CARE AMERICA INC MEDICAL CARE AMERICA INC DALLAS JAMES M SWEENEY 50YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF MCGAW INC IRVINE CALIF WAS NAMED TO THE BOARD OF THIS OPERATOR OF OUTPATIENT SURGICAL CENTERS FILLING A VACANCY 9301200131 930120 BUSINESS BRIEF BORDEN CHEMICALS & PLASTICS LP PARTNERSHIP'S NET INCOME FELL 93 IN FOURTH QUARTER BORDEN CHEMICALS & PLASTICS LP SAID NET INCOME PLUNGED 93 FOR THE FOURTH QUARTER TO 787000 OR TWO CENTS A UNIT FROM 11 MILLION OR 30 CENTS A UNIT A YEAR EARLIER SALES ROSE 6 TO 1066 MILLION FROM 1006 MILLION THE COLUMBUS OHIO COMPANY SAID THE LOWER EARNINGS RESULTED FROM HIGHER COSTS FOR NATURAL GAS AND OTHER RAW MATERIALS AND LOWER PRICES FOR PRODUCTS SUCH AS METHANOL AND POLYVINYL CHLORIDE RESINS IN THE YEAR THE PARTNERSHIP EARNED 271 MILLION OR 73 CENTS A UNIT DOWN 47 FROM 516 MILLION OR 139 A UNIT IN 1991 REVENUE FELL 2 TO 4018 MILLION FROM 410 MILLION THE PARTNERSHIP ALSO DECLARED A QUARTERLY CASH DISTRIBUTION OF 31 CENTS A UNIT FOR BOTH ITS PREFERENCE AND ENHANCED COMMON UNITS PAYABLE FEB 12 TO STOCK OF RECORD JAN 29 ITS MOST RECENT DISTRIBUTION WAS FOR 32 CENTS PAID NOV 9 IN LATE COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY BORDEN CHEMICALS COMMON UNITS DROPPED 125 TO 14625 9301200130 930120 FINANCING BUSINESS GENEVA STEEL GENEVA STEEL VINEYARD UTAH SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED OFFERING OF 125 MILLION OF SENIOR NOTES DUE 2001 UNDERWRITERS FOR THE OFFERING ARE CITICORP SECURITIES MARKETS INC AND SALOMON BROTHERS INC 9301200129 930120 BUSINESS BRIEF BOMBAY CO FISCAL SECONDQUARTER PROFIT ROSE 47 BEATING FORECASTS BOMBAY CO CONTINUING A STRING OF STRONG QUARTERS SAID FISCAL SECONDQUARTER NET INCOME ROSE 47 FROM A YEAR AGO SLIGHTLY EXCEEDING ANALYSTS' EXPECTATIONS THE HOMEFURNISHINGS CHAIN BASED IN FORT WORTH TEXAS SAID NET FOR THE PERIOD ENDED DEC 27 WAS 10 MILLION UP FROM 68 MILLION A YEAR AGO PERSHARE NET INCREASED 38 TO 65 CENTS A SHARE FROM 47 CENTS ON AN INCREASE IN AVERAGE SHARES OUTSTANDING SALES ROSE 26 TO 777 MILLION ANALYSTS HAD EXPECTED BOMBAY TO POST PROFIT OF ABOUT 60 CENTS TO 62 CENTS A SHARE THEY JUST BLEW THE LIGHTS OUT SAID DENNIS VAN ZELFDEN AN ANALYST AT RAUSCHER PIERCE REFSNES INC DALLAS HE CITED HIGHER SAMESTORE SALES AND MINIMAL USE OF PROMOTIONS FOR THE PROFIT GAIN FOR THE SIX MONTHS ENDED DEC 27 NET ROSE 54 TO 109 MILLION OR 72 CENTS A SHARE FROM 71 MILLION OR 49 CENTS A SHARE A YEAR EARLIER 9301200128 930120 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 7/8 HIGH 3 1/8 LOW 3 3/4 NEAR CLOSING BID 3 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 89 DAYS 310 90 TO 119 DAYS 315 120 TO 149 DAYS 317 150 TO 179 DAYS 320 180 TO 239 DAYS 330 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS IN MULTIPLES OF 1000 317 30 DAYS 319 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 268 ONE MONTH 274 TW MONTHS 279 THREE MONTHS 289 SIX MONTHS 307 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 315 THREE MONTHS 325 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 304 60 DAYS 306 90 DAYS 311 120 DAYS 314 150 DAYS 316 180 DAYS NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 5/16 3 3/16 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 675 GERMANY 950 JAPAN 450 SWITZERLAND 725 BRITAIN 7 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JANUARY 19 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 303 13 WEEKS 313 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 776 60 DAYS 783 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4625 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 774 60 DAYS 783 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 550 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 290 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9301200127 930120 BUSINESS BRIEF TESORO PETROLEUM CORP PAYMENT IN CONTRACT DISPUTE LEADS TO 4THQUARTER CHARGE TESORO PETROLEUM CORP SAID IT WILL TAKE A 10 MILLION FOURTHQUARTER CHARGE TO SETTLE A CONTRACTUAL DISPUTE WITH THE STATE OF ALASKA IN THE YEARAGO QUARTER THE SAN ANTONIO OIL AND NATURAL GAS COMPANY HAD A LOSS OF 416000 OR 19 CENTS A SHARE SEPARATELY TESORO ANNOUNCED IT WILL TAKE A 23 MILLION CHARGE AGAINST 1992 EARNINGS TO COMPLY WITH NEW ACCOUNTING STANDARDS FOR POSTRETIREMENT BENEFITS THE COMPANY ALSO ANTICIPATES AN ESTIMATED 9 MILLION TO 13 MILLION OF OTHER UNSPECIFIED YEAREND CHARGES UNDER THE PACT WITH ALASKA TESORO WILL IMMEDIATELY PAY THE STATE 10 MILLION AND MAKE VARIABLE MONTHLY PAYMENTS OVER THE NEXT NINE YEARS BASED UPON THE VOLUME OF FEEDSTOCK PROCESSED AT THE COMPANY'S ALASKA REFINERY AFTER NINE YEARS TESORO WILL HAVE THE OPTION TO CONTINUE VARIABLE MONTHLY PAYMENTS OR TO CONCLUDE BY PAYING THE STATE 60 MILLION 9301200125 930120 WHO'S NEWS AMERICAN ELECTRIC POWER AMERICAN ELECTRIC POWER COLUMBUS OHIO DANA E WALDO WAS NAMED PRESIDENT OF THE WHEELING POWER CO UNIT OF THIS ELECTRIC UTILITY MR WALDO 41 YEARS OLD WAS FORMERLY A DIVISION MANAGER FOR COLUMBUS SOUTHERN POWER ANOTHER AEP UNIT HE SUCCEEDS JAMES M ALLISON 39 WHO HAS BEEN NAMED VICE PRESIDENT HUMAN RESOURCES AT KENTUCKY UTILITIES CO A UNIT OF KU ENERGY CORP A LEXINGTON KY ELECTRIC UTILITY HOLDING COMPANY 9301200124 930120 BUSINESS BRIEF MEDIA LOGIC INC COMPUTER TEST GEAR MAKER POSTS SHARPLY HIGHER RESULTS MEDIA LOGIC INC SAID ITS NET INCOME ROSE SHARPLY IN THE FISCAL THIRD QUARTER AS SALES MORE THAN DOUBLED THE PLAINVILLE MASS COMPANY SAID EARNINGS FOR THE QUARTER ENDED DEC 31 JUMPED TO 12 MILLION OR 58 CENTS A SHARE FROM 231255 OR 12 CENTS A SHARE A YEAR AGO SALES CLIMBED TO 61 MILLION FROM 23 MILLION MEDIA LOGIC'S MAIN PRODUCTS ARE TEST EQUIPMENT DESIGNED TO CERTIFY THAT A COMPUTER DISKETTE IS USABLE THE COMPANY SAID ITS RESULTS REFLECTED TREMENDOUS WORLDWIDE CONSUMPTION OF COMPUTER MEDIA ESPECIALLY 35INCH DISKETTES THE SHARPLY HIGHER RESULTS WERE EXPECTED IN LATE AMERICAN STOCK EXCHANGE TRADING MEDIA LOGIC WAS DOWN 1 AT 3950 NINEMONTH NET INCOME WAS 27 MILLION OR 132 A SHARE UP FROM 425968 OR 22 CENTS A SHARE A YEAR EARLIER SALES ROSE TO 145 MILLION FROM 56 MILLION 9301200123 930120 WHO'S NEWS VIACOM INC VIACOM INC NEW YORK PHILIPPE P DAUMAN 38 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF VIACOM INTERNATIONAL INC A UNIT OF THIS ENTERTAINMENT AND COMMUNICATIONS CONCERN 76OWNED BY NATIONAL AMUSEMENTS INC A CLOSELY HELD DEDHAM MASS OPERATOR OF MOVIE THEATERS MR DAUMAN WHO HAD BEEN A PARTNER IN THE NEW YORKBASED LAW FIRM OF SHEARMAN & STERLING SUCCEEDS MARK M WEINSTEIN 50 WHO WAS RECENTLY NAMED SENIOR VICE PRESIDENT OF GOVERNMENT AFFAIRS AT THE UNIT 9301200121 930120 ITT TO TAKE BIG CHARGES TO RESTRUCTURE BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ITT CORP TOOK NEARLY 1 BILLION IN ONETIME PRETAX CHARGES TO RESTRUCTURE THE OPERATIONS AT ITS ITT FINANCIAL CORP UNIT AND SAID IT WILL REFOCUS THE CONSUMERLENDING SIDE OF THE OPERATION TO EMPHASIZE MORTGAGERELATED LENDING THE BIG CHARGES INCLUDE 693 MILLION TO COVER LOSSES ON UNSECURED CONSUMER LOANS 103 MILLION TO SHRINK THE CONSUMER OPERATION AND 132 MILLION FOR ANTICIPATED LOSSES AT ITS COMMERCIAL REALESTATE LENDING OPERATIONS CHAIRMAN RAND V ARASKOG SAID THE MOVES CLEAR THE DECKS AT ITT FINANCIAL AND GIVE NEW MANAGEMENT FLEXIBILITY AND RESOURCES TO TURN THE UNPROFITABLE CONSUMERLENDING BUSINESS IN NEW DIRECTIONS THE CHARGES WILL RESULT IN A 612 MILLION OR 523 A SHARE AFTERTAX CHARGE IN THE 1992 FOURTH QUARTER ITT'S DECISION TO BEEF UP RESERVES FOR LOAN LOSSES AT THE CONSUMERLENDING UNIT WILL INCREASE LOANLOSS PROVISIONS TO 35 OF THE 24 BILLION OF LOANS OUTSTANDING IT'S THE SECOND TIME THIS YEAR THAT ITT HAS HAD TO MAKE MASSIVE PROVISIONS TO BOLSTER THE FINANCIAL SUPPORT OF A UNIT IN THE THIRD QUARTER IT TOOK A 582 MILLION OR 441 A SHARE CHARGE TO INCREASE INSURANCE RESERVES AND ACCOUNT FOR LOSSES FROM HURRICANES ANDREW AND INIKI AT ITS ITT HARTFORD INSURANCE UNIT ITT FINANCIAL'S CONSUMERLENDING OPERATION HAS BEEN IN TURMOIL SINCE THE MID1980S WHEN VARIOUS STATE REGULATORS ACCUSED THE ITT CONSUMER FINANCIAL UNIT OF PACKING INSURANCE ONTO CONSUMER LOANS WITHOUT RECEIVING PROPER CONSUMER CONSENT THE ALLEGATIONS RESULTED IN SETTLEMENTS OF ABOUT 50 MILLION CHANGING CONSUMER PREFERENCES IN UNSECURED LENDING HAVE BATTERED THE UNIT AS SOME CUSTOMERS MOVED TOWARD CREDIT CARDS AND OTHER FORMS OF BORROWING AT THE SAME TIME THE CONSUMER UNIT WHICH MADE RELATIVELY HIGH RISK LOANS FOUND ITSELF FURTHER SQUEEZED BY THE LIBERALIZATION OF PERSONAL BANKRUPTCY LAWS AS WELL AS AN INCREASING CONSUMER WILLINGNESS TO SEEK BANKRUPTCYLAW PROTECTION AT ONE POINT IN 1990 ACCORDING TO MR ARASKOG THE UNIT HAD ABOUT 100000 ACCOUNTS HELD BY PEOPLE IN BANKRUPTCYCOURT PROCEEDINGS SINCE THE BEGINNING OF 1990 ITT'S CONSUMER FINANCE BUSINESS HAS HAD OPERATING LOSSES OF ABOUT 450 MILLION AND HAS RUN THROUGH SEVERAL CHIEF EXECUTIVE OFFICERS YESTERDAY THE COMPANY NAMED JOHN BRODERICK 50 YEARS OLD FORMER EXECUTIVE VICE PRESIDENT OF RETAIL BANKING AT FIRST NH BANK NEW HAMPSHIRE TO HEAD ITT CONSUMER WHICH IS BASED IN MINNEAPOLIS AS PART OF THE RESTRUCTURING ST LOUISBASED ITT FINANCIAL WILL CLOSE 200 OF 600 CONSUMER RETAIL OFFICES AND REDUCE ITS 5400MEMBER WORK FORCE BY 1400 THROUGH ATTRITION AND LAYOFFS FOLLOWING THE RESTRUCTURING ITT FINANCIAL LED BY CHAIRMAN AND CHIEF EXECUTIVE FRANK J SCHULTZ PLANS TO MOVE MORE AGGRESSIVELY INTO MORTGAGE LENDING AND STEP UP EFFORTS IN HOME EQUITY LENDING INVENTORY FINANCE AND THE REMAINING PROFITABLE SEGMENTS OF COMMERCIAL AND CONSUMER FINANCE HOPES TO DUPLICATE EFFORTS IN JUNE 1992 MR SCHULTZ CAME TO ITT FINANCIAL FROM BANKAMERICA CORP WHERE HE HAD DIRECTED A PROFITABLE MORTGAGE PORTFOLIO OPERATION MR SCHULTZ INSTALLED GRAHAM WILLIAMS A FORMER BANKAMERICA COLLEAGUE AS HEAD OF ITT RESIDENTIAL CAPITAL A UNIT OF ITT FINANCIAL MR WILLIAMS WILL TRY TO DUPLICATE THE SUCCESSFUL MORTGAGE OPERATION THAT MR SCHULTZ RAN AT BANKAMERICA THE RESIDENTIAL OPERATION WILL CONCENTRATE ON HOME MORTGAGES AND PORTFOLIO MANAGEMENT INCLUDING JUMBO ADJUSTABLE RATE MORTGAGES AIMING FOR FIRSTTIME HOME BUYERS THAT FALL JUST BELOW THE BANK CREDIT THRESHOLD MR SCHULTZ SAID HE CLASSIFIED THE MARKET AS HIGHMARGIN BUT WITH ONLY A MODERATE RISK ITT ALSO SAID IT WOULD TAKE A CHARGE OF 66 MILLION OR 57 CENTS A SHARE AS PART OF RESTRUCTURINGS AT ITT DEFENSE & ELECTRONICS AND ITT SHERATON CORP THE COMPANY ALSO SAID IT WOULD TAKE A CHARGE OF 45 MILLION OR 38 CENTS A SHARE TO COMPLY WITH POSTRETIREMENT BENEFITS ACCOUNTING STANDARDS THE ACCOUNTING CHANGE WILL BE APPLIED RETROACTIVELY TO JAN 1 1992 BASED ON THE COMBINED FOURTHQUARTER CHARGES ALONG WITH THE THIRDQUARTER CHARGES CONCERNING ITT HARTFORD ONE ANALYST ESTIMATED ITT WILL REPORT A LOSS OF 9498 MILLION OR 725 A SHARE FOR THE YEAR DESPITE A ONETIME GAIN OF 617 MILLION OR 471 A SHARE FROM THE SALE OF ALCATEL NV STOCK 9301200120 930120 BUSINESS BRIEF MNC FINANCIAL INC NET INCOME OF 355 MILLION POSTED FOR FOURTH QUARTER MNC FINANCIAL INC REPORTED ROBUST FOURTHQUARTER EARNINGS COMPARED WITH A YEAREARLIER LOSS BOLSTERED BY STRONG INTEREST AND NONINTEREST INCOME AND LOWER LOAN CHARGEOFFS AND LOSS PROVISIONS THE BALTIMOREBASED BANK HOLDING COMPANY WHOSE MAIN UNITS ARE AMERICAN SECURITY BANK AND MARYLAND NATIONAL BANK REPORTED NET INCOME OF 355 MILLION OR 31 CENTS A SHARE THAT COMPARES WITH A LOSS OF 824 MILLION OR 96 CENTS A SHARE IN THE 1991 QUARTER THE QUARTER INCLUDED A LOANLOSS PROVISION OF 31 MILLION COMPARED WITH 115 MILLION LAST YEAR AND NET CHARGEOFFS OF 75 MILLION COMPARED WITH 156 MILLION A YEAR AGO NET INTEREST INCOME ROSE 24 TO 1448 MILLION FROM 1166 MILLION AND OTHER OPERATING INCOME WHICH INCLUDES FEES ROSE 43 TO 972 MILLION FROM 681 MILLION 9301200119 930120 TECHNOLOGY & HEALTH SURGE IN CAESAREANS APPEARS TO BE TIED TO DOCTORS' MALPRACTICE INSURANCE RATES BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL THE SURGE OF CAESAREAN BIRTHS WHICH BY SOME ESTIMATES ADD AS MUCH AS 2 BILLION A YEAR TO AMERICA'S HEALTHCARE BILL APPEARS TO BE DRIVEN BY OBSTETRICIANS' MALPRACTICE INSURANCE RATES THAT'S THE CONCLUSION OF A NEW STUDY BY RESEARCHERS AT PENNSYLVANIA STATE UNIVERSITY'S MILTON S HERSHEY MEDICAL CENTER WHICH REPRESENTS THE MOST DETAILED LOOK YET AT FACTORS CONTRIBUTING TO CAESAREANS THE STUDY REPORTED IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION EXAMINED 60490 BIRTHS IN NEW YORK STATE HOSPITALS IN 1984 NEARLY 25 OF ALL US BIRTHS IN RECENT YEARS HAVE BEEN ACCOMPLISHED BY CAESAREAN SECTION UP FROM JUST 45 IN 1965 CAESAREANS ARE WIDELY REGARDED AS ONE OF THE SAFEST OPERATIONS WITH A VERY LOW COMPLICATION AND MORTALITY RATE BUT ACCORDING TO INSURANCE INDUSTRY STUDIES THEY ARE SIGNIFICANTLY COSTLIER THAN CONVENTIONAL DELIVERIES IN THE PENN STATE STUDY RESEARCHERS SET OUT TO ISOLATE VARIOUS FACTORS THAT COULD INFLUENCE DOCTORS' DECISIONS TO CARRY OUT A CAESAREAN THE RESEARCHERS LOOKED AT GEOGRAPHIC AREA MALPRACTICE PREMIUMS DOCTORS' PERCEIVED RISK OF BEING SUED FOR A PROBLEM DELIVERY THE NUMBER OF SUITS AGAINST THE HOSPITAL AND SEVERAL OTHER FACTORS WE FOUND THAT THE HIGHER THE MALPRACTICE PREMIUMS OR THE MORE MALPRACTICE CLAIMS FILED AGAINST OBSTETRICIANS IN THE HOSPITAL THE GREATER THE RISK THAT A WOMAN IN THE HOSPITAL WILL HAVE A CAESAREAN SAID A RUSSELL LOCALIO LEAD AUTHOR OF THE STUDY THE LINK BETWEEN MALPRACTICE CLAIMS AND CAESAREAN RATES APPLIED ONLY TO THE LEVEL OF CLAIMS AGAINST THE WHOLE GROUP OF OBSTETRICIANS AT THE HOSPITAL ACTUAL MALPRACTICE CLAIMS AGAINST SPECIFIC OBSTETRICIANS DIDN'T CORRELATE WITH THE FREQUENCY OF CAESAREANS ONCE A PATIENT IS ADMITTED TO A HOSPITAL THE RESEARCHERS WROTE SHE STANDS NO GREATER RISK OF CAESAREAN WITH ONE PHYSICIAN WHO HAS HAD A RECENT MALPRACTICE CLAIM THAN WITH ANOTHER WHO HAS NOT MEDICAL FACTORS ALSO INFLUENCED THE LIKELIHOOD OF CAESAREANS THOUGH OFTEN TO ONLY A MODEST EXTENT CAESAREANS WERE USED FOR 271 OF PREMATURE DELIVERIES 477 OF CASES OF FETAL DISTRESS AND 549 OF MULTIPLE BIRTHS THE MOST DECISIVE FACTOR WAS WHETHER THE MOTHER HAD UNDERGONE PREVIOUS CAESAREANS IF SO 939 OF SUBSEQUENT BIRTHS WERE ALSO BY CAESAREAN THE PENN STATE RESEARCHERS ALSO FOUND SHARP GEOGRAPHIC VARIATIONS IN THE INCIDENCE OF CAESAREANS IN AREAS WITH HIGH MALPRACTICE PREMIUMS NOTABLY THE LONG ISLAND SUBURBS OF NEW YORK CITY CAESAREANS WERE THREE TIMES AS COMMON AS IN LOWPREMIUM PARTS OF UPSTATE NEW YORK SEPARATE DATA COMPILED BY METROPOLITAN LIFE INSURANCE CO SHOW THE TYPICAL DOCTOR'S BILL FOR A CAESAREAN IS 2817 THAT'S ABOUT 20 HIGHER THAN FOR A CONVENTIONAL BIRTH IF ALL OTHER MEDICAL CHARGES ARE ADDED IN INCLUDING A LONGER HOSPITAL STAY FOR THE MOTHER METROPOLITAN LIFE ESTIMATES THAT TOTAL DELIVERY COSTS FOR A CAESAREAN ARE 8000 60 HIGHER THAN FOR A CONVENTIONAL BIRTH OBSTETRICIANS ARE ACUTELY CONSCIOUS OF THE MALPRACTICE ISSUE ACCORDING TO THE AMERICAN COLLEGE OF OBSTETRICIANS AND GYNECOLOGISTS ANNUAL MALPRACTICE PREMIUMS FOR OBSTETRICIANS AVERAGED NEARLY 37000 IN 1991 EQUAL TO NEARLY 20 OF THEIR AVERAGE INCOME THAT'S MORE THAN FOUR TIMES THE PREMIUM AS RECENTLY AS 1979 THE PENN STATE RESEARCHERS SAID THAT ALTHOUGH THEIR RESULTS DON'T PROVE THE EXISTENCE OF DEFENSIVE MEDICINE THEY ADD SUPPORT TO ONE OF SEVERAL EXPLANATIONS FOR HIGH RATES OF CAESAREAN DELIVERY TO REDUCE THE CAESAREAN RATE THE RESEARCHERS CONCLUDED IT WOULD HELP TO PROVIDE PHYSICIANS WITH ACCURATE DATA ABOUT THE RISKS ASSOCIATED WITH NORMAL DELIVERIES BECAUSE AN EXAGGERATED SENSE OF RISK CAN LEAD TO TOO MANY CAESAREANS 9301200118 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS ONE BIG JOKE SO THIS PRESIDENT WALKS INTO A FASTFOOD PLACE YOU KNOW AND HE BY RONALD G SHAFER MANY POLITICAL HUMORISTS ARE LOOKING FORWARD TO THE NEW CLINTON ADMINISTRATION WITH ONE COMMON EMOTION FEAR AS A FAIRLY LEFTLEANING AMERICAN CARTOONIST IT'S TAKEN THE REASON FOR LIFE AWAY SAYS MIKE PETERS SYNDICATED CARTOONIST FOR THE DAYTON DAILY NEWS THE REAGANBUSH PEOPLE MADE LIFE FABULOUS FOR ME FOR 12 YEARS IT WAS LIKE BEING A KID IN A CANDY STORE I'VE ALREADY GOT MY SUICIDEPREVENTION NUMBERS NEXT TO MY TELEPHONE WITH ALL THE NEW FACES IN WASHINGTON NOBODY WOULD RECOGNIZE ANY NAME THAT A HUMORIST PUT IN THEIR COLUMN LAMENTS COLUMNIST ART BUCHWALD WHAT'S MORE PRESIDENT CLINTON IS APPOINTING MANY WOMEN AND MINORITIES WHO YOU CAN'T MAKE FUN OF UNDER ANY CONDITIONS MR BUCHWARD ADDS I DON'T KNOW WHAT TO DO BECAUSE I USUALLY GIVE A NEW PRESIDENT A HONEYMOON OF SIX MONTHS BUT I MAY BECOME DESPERATE AND CUT THAT DOWN THESE PROFESSIONAL WITS ARE JUST KIDDING OF COURSE WE'VE GOT THIS WONDERFUL NEW CAST OF CHARACTERS WITH DIFFERENT HAIR DIFFERENT NOSES DIFFERENT ACCENTS AND NEW ISSUES SAYS JIM BORGMAN POLITICAL CARTOONIST FOR THE CINCINNATI ENQUIRER THE CHANGE STARTS AT THE TOP WITH BILL CLINTON JUST ONE LOOK AT THE ARKANSAS JOGGER FOR EXAMPLE AND NOBODY HAS TO ASK WHERE'S THE BEEF SAYS JAY LENO OF NBCTV'S TONIGHT SHOW DO YOU THINK IT EVER OCCURRED TO CLINTON THAT IF HE DIDN'T EAT EVERY MEAL AT MCDONALD'S MAYBE HE WOULDN'T HAVE TO JOG EVERY DAY FOUR YEARS AGO EVERYBODY WAS SAYING REAGAN WAS GONE HOW COULD BUSH AND DAN QUAYLE BE AS FUNNY RECALLS JOHN SIMMONS OF THE GROSS NATIONAL PRODUCT COMEDY TROUPE THE FACT THAT THE CLINTON PEOPLE ARE SO SERIOUS WILL BE FODDER FOR FUN HE SAYS THESE PEOPLE ARE JUST ANOTHER ADMINISTRATION CLINTON WILL BE REAL HYSTERICAL OVER THE YEARS GNP PLANS TO OPEN A NEW SHOW TO REPLACE ITS FOURYEAR RUN OF BUSHCAPADES AN ADMINISTRATION ON THIN ICE IT'S CALLED CLINTOONS THE FIRST HUNDRED DAZE AND THE GROUP'S SCANDAL TOURS OF INFAMOUS WASHINGTON SITES ALREADY HAS ADDED A NEW TOUR GUIDE GENNIFER FLOWERS TO ITS TOUR BUS PLUS A HANDSON GUIDE PORTRAYING SEN BOB PACKWOOD WHAT'S CERTAIN IS THAT THE NEW PRESIDENT WON'T GET A FREE RIDE A TARGET DURING HIS TRANSITION WAS HIS NAMING OF WASHINGTON INSIDERS TO TOP POSTS A PAT OLIPHANT CARTOON SHOWED TWO WOLVES IN SHEEP'S CLOTHING AT THE FIRM OF RAYPE PILLAGE PLUNDER & STEEL LAWYERS & LOBBYISTS THEY WERE SITTING BEHIND A DESK WITH THE SIGN BUSINESS AS USUAL ONE WAS ON THE TELEPHONE SAYING HELLO CLINTON TRANSITION TEAM TV COMEDIAN DAVID LETTERMAN HAS EVEN MAPPED OUT PRESIDENT CLINTON'S FIRST 100 DAYS A SAMPLE DAY 6 CLINTON CALLS MIKE DUKAKIS LAUGHS HYSTERICALLY HANGS UP DAY 66 AWKWARD MOMENT AT STATE DINNER WHEN TIPPER GORE IS SEATED NEXT TO OZZY OSBOURNE DAY 75 AT PRESS CONFERENCE CLINTON CONFRONTS WORST NIGHTMARE NEW CNN CORRESPONDENT GENNIFER FLOWERS DAY 100 AN EMACIATED DAN QUAYLE IS DISCOVERED IN ABANDONED WHITE HOUSE REFRIGERATOR WHILE SOME HUMORISTS THINK THE QUAYLE JOKES WERE OVERDONE OTHERS HATE TO LOSE A FAVORITE FOIL WE'RE IN DENIAL ON QUAYLE SAYS MS NEWPORT OF THE CAPITOL STEPS THE CHALLENGE FOR HUMORISTS HAS BEEN FINDING MATERIAL DURING THAT AWKWARD PERIOD BETWEEN THE TIME A NEW PRESIDENT IS ELECTED AND THE TIME HE ACTUALLY TAKES OFFICE THEY AREN'T ALONE IN A DISTURBING TURN MR SIMMONS SAYS THAT IN GNP'S NEW SHOW WE'RE MAKING FUN OF THE NEWS MEDIA DESPERATELY SEEKING NEWS DURING THE TRANSITION THE MEDIA ARE FUNNY BETWEEN THE SURPRISING OF THE MARINES IN SOMALIA AND THE ZEROING IN ON SOCKS THE CLINTON CAT FOR NOW POLITICAL HUMOR IS A BLEND OF THE OLD AND WHATEVER IS NEW FAVORITE TOPICS INCLUDE PRESIDENT CLINTON'S HAIR ONE DAY IT'S GRAY THE NEXT DAY IT'S KIND OF BROWN NEXT DAY IT LOOKS SILVER SAYS MR LENO I'M NOT SURE I LIKE THE IDEA OF A PRESIDENT WITH MOOD HAIR THE CLINTON CAMPAIGN BUS MR BORGMAN THE CARTOONIST CONJURES UP A PICTURE OF THE PRESIDENT GOING TO CAMP DAVID ON THE BUS FOR THE WEEKEND WITH THE BUS BEING CARRIED ALOFT BY AN AIR FORCE HELICOPTER THE PRESIDENTIAL FASTFOOD HABITS BEAT YOU TO THE PIZZA HUT SAYS PHIL HARTMAN IN THE GUISE OF A JOGGING BILL CLINTON TO HIS SECRET SERVICE DETAIL ON SATURDAY NIGHT LIVE THE LITTLE ROCK SCENE A NEW CAPITOL STEPS SONG CALLED ARCANSIS OZARCIS SUNG TO THE TUNE OF ADESTE FIDELIS MARKS THE CLINTON ROOTS IN A KIND OF RAZORBACKPIG LATIN THE PEOPLE WHO DRAW POLITICAL INSIGHTS HAVE SOME SPECIAL ADJUSTMENTS TO MAKE CARTOONISTS HAVE A VERY HARD TIME AT ELECTIONS EXPLAINS MR PETERS WHEN I GO INTO THE VOTING BOOTH DO I VOTE FOR THE PERSON WHO IS THE BEST PRESIDENT OR THE SLIME BUCKET WHO WILL MAKE MY LIFE AS A CARTOONIST WONDERFUL DRAWING THE NEW PRESIDENT'S PHYSICAL FEATURES IS NO PROBLEM CLINTON IS EXTREMELY EASY TO DRAW MR PETERS SAYS YOU KIND OF DO A HEAD LIKE A BAG OF SAND PUT ON A ROUND NOSE AND GIVE HIM A HARPO WIG CARTOONIST JACK OHMAN OF THE PORTLAND OREGONIAN SAID ON CNN'S CROSSFIRE I'M KIND OF DRAWING HIM AS A CROSS BETWEEN A BADHAIRDAY ELVIS AND JACK KENNEDY ON ANABOLIC STEROIDS WHILE THE BASIC LINES ARE EASY YOU HAVE A DIFFICULT TIME CARICATURING A NEW PRESIDENT SAYS MR MORIN OF THE MIAMI HERALD THE REASON IS YOU DON'T KNOW THE PERSON GRADUALLY I'M GETTING A VIEW OF CLINTON HE'S A YUPPIE HE LIKES ELVIS HE PLAYS THE SAXOPHONE WONDERFUL IMAGES MR MORIN AND OTHER CARTOONISTS AGREE THAT IT WILL BE MR CLINTON'S ACTIONS AS PRESIDENT THAT WILL EVENTUALLY SHAPE HIS IMAGE I'M NOT SURE I HAVE THE REAL HANG OF CLINTON YET SAYS MR BORGMAN WHO DRAWS MR CLINTON WITH PORCUPINEY HAIR A BIG JAW A KIND OF PINKISH NOSE AND DARK CIRCLES UNDER HIS EYES BUT INITIALLY THEY ARE JUST FEATURES SWIMMING AROUND HIS FACE HE SAYS THERE'S A WHOLE LOT YOU CAN'T PREDICT ABOUT HIS PERSONALITY EMERGING HUMORISTS ALSO HAVE A HOST OF OTHER NEWCOMERS TO DRAW ON TAKE VICE PRESIDENT AL GORE PLEASE WITH GORE YOU DRAW CLARK KENT AND TAKE OFF HIS GLASSES SAYS MR PETERS BUT WHEN IT COMES TO JOKE FODDER AL GORE IS NO DAN QUAYLE AN EARLY THEME HAS BEEN HIS WOODENNESS SAYS MR LENO WE'RE SWITCHING FROM DAN QUAYLE WHO LOOKS LIKE A DEER CAUGHT AND FROZEN IN THE HEADLIGHTS TO AL GORE WHO LOOKS LIKE A DEER CAUGHT AND MOUNTED ON THE WALL ANOTHER TAG IS MR GORE'S ENVIRONMENTAL ADVOCACY A NEW CAPITOL STEPS SONG IS SECRET OZONE MAN SUNG TO THE TUNE OF SECRET AGENT MAN IN IT VICE PRESIDENT GORE DISCOVERS PRESIDENT CLINTON DAMAGING THE OZONE BY USING EXTRAHOLD AEROSOL HAIR SPRAY WE'RE WAITING FOR HILLARY CLINTON TO DO SOMETHING FUNNY SAYS THE STEPS' MS NEWPORT GNP MEANWHILE IS PREPARING A SKIT WITH MARILYN QUAYLE IN HER FINAL DAYS AS SECOND LADY POKING PINS IN A VOODOO DOLL OF MRS CLINTON AND SHRIEKING I WAS SUPPOSED TO BE THE FIRST LAWYER UNTIL YOU CAME ALONG BUT SOME EARLY CARTOON SHOTS AT HILLARY TAKING POWER FROM HER HUSBAND HAVE ALREADY RANKLED ONE OBSERVER BARBARA BUSH UGLY SAID MRS BUSH OF THE CARTOONS IT'S JUST NOT FAIR SHE'S GOING TO BE JUST GREAT LET HER DO HER THING PRESIDENT BUSH DETERMINED TO EXIT LAUGHING HAD BUSH IMPERSONATOR DANA CARVEY OF SATURDAY NIGHT LIVE STAY AT THE WHITE HOUSE BUT THE SOCIAL SATIRE OF GARRY TRUDEAU'S DOONESBURY CARTOON SOMETIMES GOT UNDER THE PRESIDENTIAL SKIN MR BUSH ONCE DECLARED TO REPORTERS THAT HE FELT LIKE WANTING TO GO UP AND KICK THE HELL OUT OF TRUDEAU MR TRUDEAU USUALLY DOESN'T TALK TO REPORTERS BUT SUCH OUTBURSTS ARE WHAT SATIRISTS LIVE FOR SATIRE PICKS A ONESIDED FIGHT AND THE MORE ITS INTENDED TARGET REACTS THE MORE ITS PRACTITIONER GAINS THE ADVANTAGE MR TRUDEAU WROTE IN A 1991 WASHINGTON POST COLUMN PRESIDENT CLINTON MAY WANT TO TAKE A LESSON FROM HIS VICE PRESIDENT ON HOW TO HANDLE THE INEVITABLE BARBS MR TRUDEAU WROTE ABOUT THENSEN GORE'S RESPONSE TO A SERIES OF DOONESBURY' STRIPS IN WHICH I HAD DEPICTED HIM AS THE CALLOW PRIVILEGED PRINCE OF THE TENNESSEE VALLEY I HAPPENED TO BE DOING A BOOKSIGNING IN NASHVILLE THE WEEK THE STRIPS APPEARED WHEN I WAS SUDDENLY AND MASTERFULLY AMBUSHED BY A TEAM OF GORE CAMPAIGN AIDES BEFORE I COULD COMPOSE MYSELF THEY HAD PRESENTED ME WITH A BASKET OF BUMPER STICKERS GOOGOO CLUSTERS AND CHAMPAGNE PICTURES WERE TAKEN AND THE NEXT DAY THE WIRE SERVICES CARRIED THE STORY WHAT DID IT TELL THE PUBLIC ABOUT GORE THAT HE WAS SECURE ENOUGH TO LAUGH AT HIMSELF AND THAT HE HAD NOTHING TO FEAR FROM DETRACTORS MR TRUDEAU CONTINUED ACTUALLY THE REVERSE WAS PROBABLY TRUE WHICH IS WHY HE MOVED SO QUICKLY THE CARTOONIST ADDED BUT HE WAS SHREWD ENOUGH TO UNDERSTAND THE POLITICALLY CORRECT RESPONSE MR SHAFER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200117 930120 BUSINESS BRIEF KOLL MANAGEMENT SERVICES COMPANY ACQUIRES PORTFOLIO OF TISHMAN MIDWEST CORP KOLL MANAGEMENT SERVICES SAID IT ACQUIRED THE PROPERTY MANAGEMENT AND LEASING PORTFOLIO OF TISHMAN MIDWEST CORP A CHICAGO REAL ESTATE MANAGEMENT COMPANY TERMS WEREN'T DISCLOSED KOLL A NEWPORT BEACH CALIF REAL ESTATE MANAGEMENT CONCERN WILL ACQUIRE ALL OF TISHMAN MIDWEST'S SERVICE BUSINESSES SAID RAY WIRTA KOLL CHIEF EXECUTIVE OFFICER THE 38MILLIONSQUAREFOOT TISHMAN MIDWEST PORTFOLIO INCLUDES PROPERTIES IN NEW YORK CHICAGO FLORIDA GEORGIA VIRGINIA AND CALIFORNIA AND EXPANDS KOLL'S PORTFOLIO TO MORE THAN 70 MILLION SQUARE FEET KOLL SAID THE PURCHASE WASN'T RELATED TO AN EARLIER PROPOSED ACQUISITION SINCE ABANDONED OF RIVAL TISHMAN WEST TISHMAN MIDWEST AND TISHMAN WEST ARE SEPARATE COMPANIES 9301200116 930120 ENVIRONMENT BY DAVID STIPP RIVERS RUN THROUGH ONE OF 1993'S HOTTEST ENVIRONMENTAL ISSUES DAM RELICENSING FOR DECADES ELECTRIC UTILITIES AND OTHER COMPANIES HAVE PROFITED FROM DAMS ON PUBLICLY OWNED RIVERS ENVIRONMENTALISTS ARGUE THAT MORE PUBLIC BENEFITS SHOULD FLOW FROM THESE RESOURCES THEY POINT TO THE ELECTRIC CONSUMERS ACT OF 1986 WHICH REQUIRES THE FEDERAL ENERGY REGULATORY COMMISSION TO PUT RECREATIONAL AND ENVIRONMENTAL FACTORS ON A PAR WITH ONES RELATED TO POWER GENERATION WHEN LICENSING DAMS FEDERAL LICENSES ON 157 HYDROELECTRIC PROJECTS 16 OF THOSE OVERSEEN BY THE FERC EXPIRE THIS YEAR SAYS MATTHEW HUNTINGTON A SPOKESMAN FOR AMERICAN RIVERS A WASHINGTON DC ENVIRONMENTAL GROUP IT'S THE FIRST BIG WAVE OF DAM RELICENSING CASES SINCE THE NEW LAW WAS PASSED AND WILL DEFINE HOW FERC DOES DAM RELICENSING IN THE FUTURE THE STAKES ARE HUGE THE PRESENT VALUE OF POWER TO BE GENERATED IN NEW ENGLAND ALONE UNDER DAM LICENSES UP FOR RENEWAL THIS YEAR IS ESTIMATED AT MORE THAN 2 BILLION SAYS DAN SOSLAND A SPOKESMAN FOR THE CONSERVATION LAW FOUNDATION BOSTON HIS GROUP IS ONE OF SEVERAL PUSHING FOR RELICENSING PACTS THAT REQUIRE DAM OWNERS TO FUND NEW FISH LADDERS AROUND DAMS PROTECT LAND THEY OWN FROM DEVELOPMENT OR TAKE OTHER CONSERVATION STEPS FOR INSTANCE DAM OWNERS WHO RUN OLD MILLS WITH HYDROPOWER MIGHT BE REQUIRED TO INSTALL ENERGYEFFICIENT MACHINES SO WE'RE NOT GIVING AWAY ALL THIS ELECTRICITY JUST TO SUPPORT HALFWITTED ENERGY POLICIES SAYS DOUGLAS FOY THE GROUP'S DIRECTOR BUT SOME DAM OWNERS ARGUE SUCH CHANGES COULD HURT THEIR BUSINESSES BOWATER WHICH POWERS PULP PLANTS IN MAINE WITH DAMS NOW UP FOR RELICENSING WILL CONSIDER IMPLEMENTING CONSERVATION MEASURES PROPOSED BY ENVIRONMENTALISTS ONLY AFTER ITS LICENSES ARE RENEWED SAYS SPOKESMAN GORDON MANUEL MR SOSLAND COUNTERS THAT IN OUR VIEW YOU CAN'T DIVORCE RELICENSING FROM SUCH MEASURES THE LONELIEST SONG GOES KRAA KRAA KRAA IT'S THE SOUND OF THE SPIX'S MACAW PERHAPS THE WORLD'S MOST ENDANGERED BIRD A SPECIES OF BLUE PARROT IT WAS THOUGHT TO BE EXTINCT IN THE WILD UNTIL 1990 WHEN ONE WAS SPOTTED IN BRAZIL BRAZILIAN AUTHORITIES WORRIED THAT POACHERS MIGHT TRY TO NAB IT ARE CLOSELY MONITORING ITS PREFERRED PATCH OF FOREST BUT THEY ALLOWED AN ASSOCIATE OF THE CORNELL UNIVERSITY LIBRARY OF NATURAL SOUNDS TO GET CLOSE ENOUGH IN 1991 TO RECORD ITS SOUNDS THE UNIQUE RECORDING ITSELF CLOSELY GUARDED COULD BE A POWERFUL TOOL TO HELP BIOLOGISTS FIND MORE OF THE BIRDS AND BRING THEM TOGETHER FOR BREEDING SAYS GREGORY BUDNEY THE LIBRARY'S CURATOR ACOUSTIC IDENTIFICATION IS A MUCH MORE EFFECTIVE WAY TO DETECT BIRDS IN DENSE FORESTS THAN TRYING TO SEE THEM HE ADDS BUT IT MAY BE TOO LATE IN A COMMON PATTERN HABITAT DESTRUCTION OVER MANY YEARS MADE THE BIRD RARE ENOUGH SO THAT IT BECAME HIGHLY SOUGHT BY BIRD FANCIERS AND THEN POACHERS IN THE EARLY '80S VIRTUALLY POLISHED OFF WHAT LAND DEVELOPERS STARTED SAYS DONALD BRUNING AN ORNITHOLOGIST AT THE NEW YORK ZOOLOGICAL SOCIETY NOW HE ADDS THE BIRD'S FATE DEPENDS ON WHETHER EXOTICANIMAL COLLECTORS WHO HOLD TWO DOZEN OR SO SPIX'S MACAWS WILL LEND THE BIRDS FOR A CAPTIVE BREEDING PROGRAM IN BRAZIL AS WATER RATES GO UP SOME BOSTONIANS ARE GOING DOWN ABOUT 900 FEET TO FIND WATER AVERAGE WATER AND SEWER BILLS IN BOSTON HAVE MORE THAN TRIPLED SINCE 1985 TO COVER COSTS OF CLEANING UP BOSTON HARBOR TO CUT THEIR BILLS SEVERAL BOSTON BUSINESSES HAVE RECENTLY DRILLED THEIR OWN WELLS IT'S A VERY ALARMING TREND SAYS JONATHAN KALEDIN EXECUTIVE DIRECTOR OF THE NATIONAL WATER EDUCATION COUNCIL A BOSTONBASED GROUP THAT TRACKS WATERPROJECT FUNDING ISSUES AS CUSTOMERS LEAVE THE SYSTEM THOSE WHO REMAIN MUST SHOULDER HIGHER FUNDING BURDENS IF SUCH DRILLING BECOMES A TREND IT COULD UNDERMINE FUNDING IN A NUMBER OF CITIES FOR PROJECTS TO COMPLY WITH CLEANWATER LAWS NEW YORK CITY WATER PROJECTS FOR EXAMPLE ARE EXPECTED TO COST MORE THAN 10 BILLION DURING THE 1990S ACCORDING TO A RECENT REPORT BY MR KALEDIN'S GROUP BOSTON OFFICIALS ALSO WORRY THAT BUILDINGS IN THE CITY'S BACK BAY AREA A FILLEDIN SWAMP MAY SINK IF WELLS LOWER THE WATER TABLE STRUCTURES THERE REST ON IMMERSED WOODEN PILINGS THAT WILL ROT IN TWO OR THREE YEARS IF EXPOSED TO AIR AS THE WATER LEVEL DROPS WARNS BOSTON CITY COUNCILMAN DAVID SCONDRAS CITY OFFICIALS CITING OVER 400 KNOWN HAZARDOUSSPILL SITES IN BOSTON ALSO FRET WELLS MAY TAP INTO POLLUTED WATER BUT THE ECONOMIC ARGUMENTS FOR DRILLING ARE OVERWHELMING SAYS ROGER BERKOWITZ COOWNER OF LEGAL SEA FOODS A BOSTON RESTAURANT CHAIN THAT RECENTLY DRILLED A WELL ITS 15000GALLONADAY GUSHER SAVES THE COMPANY 2500 A MONTH BY PROVIDING WATER FOR LAUNDRY AND OTHER USES THOUGH IT ISN'T USED FOR DRINKING MR BERKOWITZ SAYS TESTS SHOW WATER FROM THE CHAIN'S WELL SURPASSES BOSTON'S MUNICIPAL WATER IN PURITY HONOLULU HAS THE BEST ENVIRONMENTAL QUALITY AMONG THE 75 LARGEST US CITIES AND GREENSBORO NC HAS THE WORST ACCORDING TO THE 1993 ENVIRONMENTAL ALMANAC COMPILED BY THE WORLD RESOURCES INSTITUTE IN WASHINGTON THE GROUP RANKED CITIES BASED ON NINE FACTORS INCLUDING AIR QUALITY RELEASES OF TOXIC CHEMICALS AND MASSTRANSIT USE FRESNO CALIF RANKS AMONG THE WORST US CITIES FOR AIR POLLUTION BUT LATELY HAS BEEN ONE OF THE MOST PRISTINE WHEN IT COMES TO TOXICCHEMICAL RELEASES NEWARK NJ RECYCLES A HIGHER PERCENTAGE OF TRASH THAN ANY CITY EXCEPT HONOLULU DENVER RESIDENTS ARE AMONG THE NATION'S HEAVIEST WATER USERS WHILE FOLKS IN BUFFALO NY ARE AMONG THE LEAST WASTEFUL WITH WATER INDIANAPOLIS RESIDENTS PRODUCE THE LEAST TRASH PER CAPITA 9301200115 930120 BUSINESS BRIEF ST PAUL COS OPERATING LOSS FOR 1992 WILL BE REPORTED BY FIRM ST PAUL COS SAID IT WILL REPORT AN OPERATING LOSS OF ABOUT 335 MILLION OR 862 A SHARE FOR 1992 MAINLY BECAUSE OF THE WRITEOFF OF 365 MILLION OF GOODWILL ASSOCIATED WITH ITS MINET GROUP PLC UNIT IN NOVEMBER THE ST PAUL MINN INSURANCE CONCERN SAID IT WOULD TAKE A MATERIAL WRITEDOWN OF A PORTION OF THE INSURANCE BROKERAGE UNIT'S GOODWILL AND PROJECTED AN OPERATING LOSS FOR THE FOURTH QUARTER AND YEAR BUT THE AMOUNTS HADN'T BEEN DETERMINED THE ACTION IS PART OF THE RESTRUCTURING OF THE UNIT AND AN ASSESSMENT OF THE CARRYING VALUE OF MINET THE COMPANY SAID THE CHARGE REPRESENTS 75 OF THE GOODWILL RELATED TO MINET THE COMPANY SAID CATASTROPHE LOSSES ITS EARLY RETIREMENT PROGRAM AND DISAPPOINTING FOURTHQUARTER RESULTS IN ITS REINSURANCE AND INTERNATIONAL UNDERWRITING OPERATIONS ALSO CONTRIBUTED TO THE LOSS IN THE YEAREARLIER FOURTH QUARTER ST PAUL EARNED 1094 MILLION OR 252 A SHARE FOR THE YEAR IT EARNED 4051 MILLION OR 935 A SHARE 9301200114 930120 MARKETING & MEDIA BRIEF ADOLPH COORS CO EXTRA GOLD LIGHT BEER BRAND WILL BE INTRODUCED APRIL 5 COORS BREWING CO SAID IT WILL INTRODUCE EXTRA GOLD LIGHT AN EXTENSION OF ITS EXTRA GOLD BEER APRIL 5 IN 24 MARKETS COORS BREWING A UNIT OF ADOLPH COORS CO GOLDEN COLO IS LAUNCHING THE BEER IN MARKETS WHERE THE EXTRA GOLD BRAND IS DOING WELL SAID BRAND DIRECTOR GARY SKOVSTED IT WILL BE AIMED AT LIGHT BEER DRINKERS WHO ARE LOOKING FOR MORE FLAVOR AND PREMIUM BEER DRINKERS WHO ARE LEANING TOWARD LIGHT BEERS HE SAID THE BREW WILL HAVE 108 CALORIES COMPARED WITH THE 153 CALORIES IN EXTRA GOLD ADVERTISING WILL BE CREATED BY FOOTE CONE & BELDING COMMUNICATIONS INC OF CHICAGO MR SKOVSTED SAID LIKE THE CURRENT EXTRA GOLD TELEVISION ADS THE LIGHT BRAND ADS WILL FEATURE REAL PEOPLE WHO ARE TRYING THE BEER HE SAID AD SPENDING FOR BOTH EXTRA GOLD AND EXTRA GOLD LIGHT WILL BE ABOUT 23 MILLION THIS YEAR 9301200113 930120 BUSINESS BRIEF FEDERAL HOME LOAN MORTGAGE CORP MORTAGE PACKAGER SAYS NET ROSE 6 IN FOURTH QUARTER FEDERAL HOME LOAN MORTGAGE CORP OR FREDDIE MAC SAID FOURTHQUARTER EARNINGS ROSE 6 REFLECTING A PICKUP IN MORTGAGE LENDING AND GAINS ON ITS INVESTMENT PORTFOLIO EARNINGS FOR THE QUARTER WERE 156 MILLION UP FROM 146 MILLION IN THE YEAREARLIER PERIOD BUT PERSHARE NET SLIPPED TO 80 CENTS FROM 81 CENTS AFTER PAYMENT OF AN 11 MILLION PREFERRED STOCK DIVIDEND THE MCLEAN VA COMPANY WHICH BUYS MORTGAGES AND PACKAGES THEM FOR RESALE AS SECURITIES SAID EARNINGS WERE HURT BY 71 MILLION IN NET FLOAT LOSSES FROM HEAVY MORTGAGE REFINANCINGS IN A FLOAT PERIOD FREDDIE MAC MUST CONTINUE PAYING HOLDERS OF THE MORTGAGEBACKED SECURITIES FOR 30 DAYS AFTER MORTGAGES ARE PREPAID PAYING OUT ABOUT 9 WHILE EARNING ONLY ABOUT 3 ON THE MONEY 9301200112 930120 BUSINESS BRIEF ASK GROUP INC SOFTWARE CONCERN REPORTS IMPROVED 2NDPERIOD RESULTS GROWING SOFTWARE LICENSE FEES FUELED ASK GROUP INC'S PROFIT OF 36 MILLION OR 16 CENTS A SHARE IN ITS SECOND QUARTER WHICH ENDED DEC 31 THE CONCERN HAD A NET LOSS OF 538 MILLION OR 272 A SHARE A YEAR EARLIER BECAUSE OF A ONETIME WRITEDOWN OF GOODWILL AND INTANGIBLE ASSETS WITHOUT THE WRITEDOWN ASK WOULD HAVE HAD A PROFIT OF 1 MILLION OR FIVE CENTS A SHARE A YEAR EARLIER SECONDQUARTER REVENUE GREW ABOUT 6 TO 1135 MILLION FROM 107 MILLION ASK BASED IN MOUNTAIN VIEW CALIF SAID THE IMPROVEMENT REFLECTS THE CONTINUING EXPANSION OF ITS SOFTWARE AND SERVICES BUSINESS AND THE REDUCED EMPHASIS ON ITS HARDWARE BUSINESS SOFTWARE AND SERVICES REVENUE NOW ACCOUNT FOR 88 OF ASK'S REVENUE UP FROM 83 A YEAR EARLIER 9301200111 930120 CORRECTIONS & AMPLIFICATIONS RICHARD FURLAUD IS A FORMER PRESIDENT OF BRISTOLMYERS SQUIBB CO AND A FORMER CHAIRMAN OF SQUIBB CO HE WAS INCORRECTLY IDENTIFIED AS A FORMER CHAIRMAN OF BRISTOLMYERS INC IN AN ARTICLE MONDAY ABOUT AMERICAN EXPRESS CO SCHLUMBERGER LTD SAYS IT ACQUIRED THE REMAINING INTEREST IN DOWELL SCHLUMBERGER FOR 775 MILLION WHICH INCLUDED 675 IN CASH AND 100 MILLION IN WARRANTS YESTERDAY'S INVESTMENT INSIGHT COLUMN SAID THE ACQUISITION WAS VALUED AT 112 BILLION BASED ON DATA PROVIDED BY SECURITIES DATA CO BELL INDUSTRIES INC'S LARGEST OPERATING SEGMENT THE ELECTRONICS DISTRIBUTION GROUP HAD SALES OF ABOUT 60 MILLION IN THE SECOND QUARTER ENDED DEC 31 AN ARTICLE YESTERDAY INCORRECTLY STATED THAT THE SALES FIGURE WAS FOR THE ENTIRE COMPANY 9301200110 930120 BUSINESS BRIEF PIPER JAFFRAY COS FIRSTPERIOD NET GAINED 21 ON 19 INCREASE IN REVENUE PIPER JAFFRAY COS CITING STRENGTHENED RESULTS IN ALL THREE OF ITS MAJOR OPERATIONS SAID FISCAL FIRSTQUARTER NET CLIMBED 21 ON A 19 RISE IN REVENUE THE MINNEAPOLIS BROKERAGE CONCERN SAID NET IN THE PERIOD ENDED DEC 31 WAS 89 MILLION OR 104 A SHARE UP FROM THE YEARAGO 74 MILLION OR 88 CENTS A SHARE REVENUE INCREASED TO 899 MILLION FROM 755 MILLION PIPER JAFFRAY CREDITED THE LATEST QUARTER'S STRONG PERFORMANCE TO INVESTMENTS THROUGH ACQUISITIONS AND STAFF EXPANSION MADE IN RECENT YEARS IN ITS INDIVIDUAL INVESTOR SERVICES CAPITAL MARKETS AND INVESTMENT MANAGEMENT SERVICES OPERATIONS ALL THREE SEGMENTS HAD EARNINGS GROWTH IN THE QUARTER SAID A SPOKESWOMAN THE COMPANY DOESN'T BREAK OUT EARNINGS BY SEGMENT HOWEVER IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY PIPER JAFFRAY FELL 125 CENTS TO 2750 9301200109 930120 INAUGURATION A SPECIAL REPORT FOREIGN FOCUS THE HOT SPOTS PRESIDENT CLINTON ALMOST CERTAINLY WILL FACE A FOREIGN CRISIS THE QUESTION IS WHERE BY GERALD F SEIB WASHINGTON FOR SOME REASON IT'S USUALLY THE DARK OF NIGHT WHEN A PRESIDENT GETS THE OMINOUS TELEPHONE CALL TELLING HIM A FOREIGNPOLICY CRISIS HAS ERUPTED FOR PRESIDENT BUSH IT WAS LATE ONE STORMY NIGHT AT HIS HOME IN KENNEBUNKPORT MAINE WHEN WORD CAME THAT A COUP TO OVERTHROW SOVIET PRESIDENT MIKHAIL GORBACHEV WAS UNDER WAY IN MOSCOW AND IT WAS NEAR BEDTIME ON AN OCTOBER EVENING AT THE WHITE HOUSE WHEN NATIONAL SECURITY ADVISER BRENT SCOWCROFT CAME BY TO CONFIRM THAT A FULLFLEDGED IRAQI INVASION OF KUWAIT HAD BEGUN SO INEVITABLY THE LATENIGHT CALLS WILL COME FOR PRESIDENT CLINTON THERE'S NO TELLING FOR SURE WHAT THE CRISES WILL BE WHEN PRESIDENT BUSH WAS ELECTED NOBODY WOULD HAVE DARED TO PREDICT THAT THE BERLIN WALL WOULD FALL IN PRECISELY 12 MONTHS THAT US ARMY RANGERS WOULD BE PARACHUTING INTO PANAMA IN JUST 13 MONTHS OR THAT IRAQI TANKS WOULD ROLL INTO KUWAIT WITHIN TWO YEARS BUT IT IS POSSIBLE TO PINPOINT SOME OF THE SPOTS ON THE GLOBE MOST LIKELY TO PRODUCE A CRISIS FOR THE NEW PRESIDENT ALREADY MR CLINTON ENTERS OFFICE INHERITING ONE ROLLING CRISIS THE USLED MILITARY MISSION TO FEND OFF MASS STARVATION IN SOMALIA BEYOND THAT HERE ARE A FEW OF THE TROUBLING AREAS WITH THE GREATEST POTENTIAL FOR GIVING MR CLINTON HIS MAALOX MOMENTS ONE SENIOR US INTELLIGENCE OFFICIAL CALLS BORIS YELTSIN THE CLOSEST THING THE WORLD HAS TO AN IRREPLACEABLE LEADER IN SOME WAYS THAT IS A HUGE INTERNAL ADVANTAGE TO THE RUSSIAN PRESIDENT BUT IT ALSO OPENS UP THE POSSIBILITY OF ENORMOUS GLOBESHAKING UPHEAVAL IF SOMETHING HAPPENS TO HIM IN A SENSE MR CLINTON FACES TWO POTENTIAL CRISES IN RUSSIA THE FIRST WOULD BE IF SOME CALAMITY BEFELL MR YELTSIN DIRECTLY A COUP A MILITARY MOVE AGAINST HIM OR AN ASSASSINATION THERE IS NO OTHER POLITICIAN EVEN APPROACHING HIS STATURE IN THE RUSSIAN CONSTELLATION AND CERTAINLY NONE WITH THE POWER OR COURAGE TO PUSH ECONOMIC REFORMS AHEAD AT FULL SPEED AND LIKE MR GORBACHEV BEFORE HIM MR YELTSIN INCREASINGLY FINDS HIMSELF SURROUNDED BY HOSTILE FIGURES AS HE COMPROMISES WITH CONSERVATIVE FORCES ALIGNED AGAINST HIS MARKET REFORMS RUSLAN KHASBULATOV THE SPEAKER OF THE RUSSIAN CONGRESS HAS ESTABLISHED HIMSELF AS A FORMIDABLE OPPOSITION FORCE THE CIVIC UNION A GROUP OF ONETIME COMMUNIST INDUSTRIALISTS HAS ALSO EMERGED AS A TROUBLESOME RIVAL POWER CENTER MOREOVER MR YELTSIN'S OWN VICE PRESIDENT ALEXANDER RUTSKOI IS A FORMER MILITARY MAN OF HIGHLY DUBIOUS LOYALTY BUT THE MORE LIKELY AND MORE INSIDIOUS CRISIS MR CLINTON MAY FACE IS A CREEPING COUP IN MOSCOW THAT'S THE RUSSIAN TERM FOR A PROCESS IN WHICH ANTIREFORM ELEMENTS OF THE RUSSIAN SYSTEM COULD SIMPLY BEAT DOWN THE YELTSIN REFORM PROGRAM SLOWLY BUT SURELY MR YELTSIN'S RECENT DECISION TO DUMP HIS REFORMIST PRIME MINISTER YEGOR GAIDAR AND REPLACE HIM WITH VIKTOR CHERNOMYRDIN AN OLDLINE SOVIET BUREAUCRAT IS A SIGN OF BACKSLIDING IF THE PROCESS CONTINUES THE RESULTS COULD BE CALAMITOUS A RETREAT BACK TO A CLOSED ECONOMY AN END TO THE POLITICALLY STABILIZING PROCESS OF INTEGRATING RUSSIA INTO THE WORLD ECONOMY A REFUSAL TO IMPLEMENT THE STRATEGIC DISARMAMENT DEAL TENTATIVELY STRUCK WITH PRESIDENT BUSH MORE RUSSIAN ARMS SALES ABROAD AND A REFUSAL TO COOPERATE WITH THE WEST ON SUCH KNOTTY PROBLEMS AS THE FORMER YUGOSLAVIA A CREEPINGCOUP CRISIS WOULD BE PARTICULARLY DEVILISH FOR PRESIDENT CLINTON THERE WOULD BE NO SPECIFIC LATENIGHT EVENT CLEARLY JUSTIFYING ACTION AND A SLOW TURN AWAY FROM DEMOCRACY IN RUSSIA WOULD POSE AN AWKWARD POLITICAL DILEMMA AT HOME AS WELL THE FURTHER RUSSIA SLIPS FROM ECONOMIC REFORM AND DEMOCRATIZATION THE HARDER IT WILL BE TO CONTINUE SELLING CONGRESS ON SIGNIFICANT FINANCIAL HELP FOR MOSCOW YET CUTTING OFF ASSISTANCE WOULD BE TANTAMOUNT TO THROWING IN THE TOWEL IN THE MOUNUMENTAL BATTLE TO SAVE RUSSIA THERE ARE SO MANY POTENTIAL CRISES IN THE MORASS THAT ONCE WAS YUGOSLAVIA THAT IT WILL BE HARD FOR THE CLINTON ADMINISTRATION TO KNOW WHICH ONE TO WORRY ABOUT THE MOST AT THE OUTSET MR CLINTON FACES WHAT ANALYST PATRICK GLYNN OF THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON DC CALLS A HUMANITARIAN DISASTER IN BOSNIA AS THE ONSLAUGHT BY SERBIAN FIGHTERS MAKES IT DIFFICULT FOR BOSNIAN CIVILIANS TO FEED THEMSELVES AND KEEP WARM DURING THE WINTER A CONTINUATION OF THIS CALAMITY IS ALMOST A GIVEN AS THE US GETS MORE DEEPLY INVOLVED IN THE UNITED NATIONS MILITARY EFFORT TO GET AID TO BOSNIAN MUSLIMS BEING DRIVEN FROM THEIR HOMES THE PROSPECT OF AMERICAN ENTANGLEMENT AND AMERICAN CASUALTIES GROWS AND IF MR CLINTON FOLLOWS THROUGH ON CAMPAIGN SUGGESTIONS THAT HE MIGHT FUNNEL ARMS TO BOSNIAN FIGHTERS THERE WILL BE NO ESCAPING DEEPER POLITICAL INVOLVEMENT IN THE SERBIANBOSNIAN WAR HOWEVER NONE OF THIS REPRESENTS THE TRUE NIGHTMARE SCENARIO FOR MR CLINTON THE REAL CRISIS WILL COME IF AS MANY EXPECT SERBIA SOON CONCLUDES THAT IT HAS EFFECTIVELY CONSUMED BOSNIA AND TURNS TO GOBBLING UP THE NEIGHBORING REPUBLIC OF KOSOVO KOSOVO'S MUSLIMS THEN WOULD BE DRIVEN TOWARD ALBANIA ETHNIC ALBANIANS IN KOSOVO AND NEIGHBORING MACEDONIA WOULD RISE TO DEFEND THEMSELVES ALBANIA ALSO COULD JOIN THE FIGHT TO PROTECT THE ETHNIC ALBANIANS TURKEY WHICH RECENTLY SIGNED MILITARYPREPARATION AGREEMENTS WITH ALBANIA IN ANTICIPATION OF JUST SUCH A CRISIS COULD JOIN IN THE FIGHTING SUDDENLY A FULLFLEDGED BALKAN WAR COULD BE UNDER WAY THE KEY FOR MR CLINTON MAY BE TO SEE THAT SERBIAN AGGRESSION IS CURBED BEFORE IT EXTENDS BEYOND THE ALREADY SCARRED REPUBLIC OF BOSNIA I FAVOR SUPPLYING ARMS TO BOSNIA SAYS MR GLYNN THE OUTCOME YOU'RE LOOKING FOR ISN'T ALLOWING THE BOSNIANS TO RECONQUER EVERY INCH OF THEIR TERRITORY BUT TO GIVE SERBIA SOME INCENTIVE TO COME BACK TO THE NEGOTIATING TABLE AS THE HOSTILITIES OF THE LAST TWO WEEKS MAKE CLEAR THERE IS LITTLE DOUBT THAT IRAQI LEADER SADDAM HUSSEIN WILL TEST THE METTLE OF THE NEW AMERICAN PRESIDENT ALMOST IMMEDIATELY UNFORTUNATELY FOR MR CLINTON IT WON'T BE HARD FOR SADDAM HUSSEIN TO FIND CONTINUED OPPORTUNITIES TO POSE THAT TEST AND WHILE MR BUSH MAY HAVE DONE THE NEW PRESIDENT A FAVOR BY HITTING IRAQ IN HIS FINAL DAYS IN OFFICE HE ALSO HAS SET UP AN EXPECTATION THAT MR CLINTON WILL BE SIMILARLY SWIFT IN ACTING THAT'S AN EXPECTATION A NEW PRESIDENT CAN DASH ONLY AT GREAT PERIL TO HIS REPUTATION AT VIRTUALLY ANY TIME THE IRAQI LEADER CAN RAISE A CHALLENGE BY SIMPLY BLOCKING THE WORK OF UN WEAPONS INSPECTORS PERIODIC WEAPONS INSPECTIONS CONTINUE AND UN SECURITY COUNCIL RESOLUTIONS CALL FOR ESTABLISHING A LONGTERM MONITORING PROGRAM IRAQ ALSO COULD CAUSE TROUBLE BY REFUSING TO ACCEPT A NEWLY DEMARCATED BORDER WITH KUWAIT OR SADDAM HUSSEIN COULD CRACK DOWN AT ANY TIME ON EITHER KURDISH OPPONENTS IN IRAQ'S NORTH OR SHIITE MUSLIMS IN THE SOUTH PARTICULARLY IN THE NORTH IRAQI TROOPS HAVE A HISTORY OF SIMPLY CUTTING OFF FOOD AND FUEL SUPPLIES THEREBY DRIVING KURDS OUT OF THEIR VILLAGES IN SEARCH OF HELP AND OF LAUNCHING MILITARY SWEEPS THROUGH THE REGION US FORCES ARE MONITORING A BAN ON IRAQI MILITARY FLIGHTS IN THE SOUTH AND HELPING TO PATROL THE SKIES OF KURDISTAN IN THE NORTH SO IRAQI MOVES IN EITHER AREA WOULD REPRESENT A CLEAR CHALLENGE TO THE US EVEN TRICKIER FOR MR CLINTON WOULD BE A CRISIS PRECIPITATED BY KURDISH OR SHIITE FIGHTERS WHO COULD STIR UP TROUBLE WITH THE SPECIFIC AIM OF DRAWING IN THE US ON THEIR SIDE KURDISH FIGHTERS IN PARTICULAR COULD TRY TO FORCE THE NEW ADMINISTRATION'S HAND BY CHALLENGING IRAQ'S TROOPS BECAUSE KURDISH LEADERS HAVE EARLIER TIES TO VICE PRESIDENT AL GORE THEY MAY CALCULATE THAT AMERICAN HELP WOULD BE FORTHCOMING ONCE HOSTILITIES BEGAN THE IMMEDIATE POTENTIAL CRISIS FOR MR CLINTON HERE IS SIMPLE THOUSANDS OF HAITIAN REFUGEES HEARTENED BY HIS CAMPAIGN PLEDGE TO GIVE THEM TEMPORARY ASYLUM UNTIL WE RESTORE THE ELECTED GOVERNMENT OF HAITI COULD WELL HOP ON BOATS AND HEAD TOWARD FLORIDA ONCE MR CLINTON IS IN THE OVAL OFFICE MR CLINTON ALREADY HAS DECIDED TO ENDURE THE CRITICISM ASSOCIATED WITH BREAKING A CAMPAIGN PROMISE BY BACKING AWAY FROM THAT POSITION A WEEK BEFORE TAKING OFFICE HE SAID HE WOULD MAINTAIN BUSH ADMINISTRATION POLICY AFTER ALL BY INTERCEPTING AND RETURNING HAITIAN REFUGEES WHO TRY TO ENTER THE US MR CLINTON SAYS THE CONTINUATION OF BUSH POLICY IS ONLY TEMPORARY WHILE HE FIGURES OUT A BETTER WAY TO PROCESS HAITIAN ASYLUM CLAIMS BUT EVEN THAT SHORTTERM FIX WON'T ERASE THE LONGTERM RISK OF CRISIS THE LONGERTERM CRISIS COULD ARISE IF THE US AND ITS ALLIES IN THE HEMISPHERE FAIL TO FIND A WAY TO RESTORE THE ELECTED GOVERNMENT OF PRESIDENT JEANBERTRAND ARISTIDE THAT MIGHT MEAN A STEADY SLIDE DOWNWARD INTO ECONOMIC DEPRAVITY AND HUMANRIGHTS ABUSES A HEMISPHEREWIDE ECONOMIC EMBARGO OF HAITI HASN'T BROUGHT A RETURN TO DEMOCRACY YET MR CLINTON HAS CALLED FOR EXPANDING THAT EMBARGO TO INCLUDE OIL SHIPMENTS IT ISN'T CLEAR WHAT WILL HAPPEN IF ECONOMIC DESPERATION SIMPLY GROWS AMONG HAITI'S PEOPLE WHILE THE MILITARY GOVERNMENT CONTINUES TO REIGN YOU COULD HAVE BREAD RIOTS OR DEMONSTRATIONS PUT DOWN WITH GREAT BRUTALITY SAYS ALEX WILDE EXECUTIVE DIRECTOR OF THE WASHINGTON OFFICE ON LATIN AMERICA AND UNDER SUCH CIRCUMSTANCES CRIES WOULD GO UP IN SOME QUARTERS FOR DIRECT AMERICAN INTERVENTION TO PROTECT HAITI'S PEOPLE AND RESTORE DEMOCRACY ONCE AND FOR ALL AFTER SOMALIA NOTES MR WILDE IT BECOMES LESS IMPOSSIBLE TO THINK OF SCENARIOS THAT COULD LEAD TO SOME KIND OF MILITARY INTERVENTION PEACEKEEPING INTERVENTION PEACEMAKING INTERVENTION THE KEY FOR MR CLINTON IS TO PREVENT A HUMANITARIAN AND REFUGEE CRISIS FROM FORMING AND IN THE LONG RUN TO FIND THE DIPLOMATIC FORMULA THAT RETURNS DEMOCRACY TO HAITI A WIDESPREAD FEAR IS EMERGING IN THE FOREIGNPOLICY COMMUNITY THAT THE US AND IRAN ONCE AGAIN ARE ON A COLLISION COURSE IRAN ISN'T A LIKELY CANDIDATE FOR AN INSTANT CRISIS FOR MR CLINTON BUT IT REPRESENTS ONE OF HIS TOP LONGTERM WORRIES THERE SEEMS TO BE SOME KIND OF A MOOD HERE THAT COULD LEAD TO A CONFRONTATION BETWEEN A REGIONAL SUPERPOWER IRAN AND A WORLD SUPERPOWER THE UNITED STATES SAYS JAMES BILL A LONGTIME IRANWATCHER AT THE COLLEGE OF WILLIAM AND MARY THE PERSIAN GULF IS STILL A TINDERBOX AND I WOULD GUESS THAT MIGHT BE ONE OF THE FIRST AREAS WHERE CLINTON MIGHT HAVE TO MAKE SOME TOUGH DECISIONS THE FEARS ABOUT USIRANIAN RELATIONS ARISE FROM SOME FAIRLY SIMPLE CAUSES WITH IRAQ BATTERED AND SHACKLED IRAN EMERGES AS THE LOGICAL DOMINANT POWER IN THE PERSIAN GULF IRAN IS EMBARKED ON A LONGTERM MILITARY REBUILDING PROGRAM IN WHICH IT HAS RATTLED AMERICAN OFFICIALS BY BUYING SUCH POWERPROJECTING ITEMS AS SUBMARINES AND MISSILES AND DESPITE THE DEATH OF AYATOLLAH KHOMEINI THE FADING MEMORY OF THE TEHRAN HOSTAGE CRISIS AND THE RELEASE OF HOSTAGES IN LEBANON THE AMERICANIRANIAN RAPPROCHEMENT THAT MANY HOPED FOR SIMPLY HASN'T MATERIALIZED THERE IS ONE IMMEDIATE POTENTIAL FLASHPOINT IRAN AND THE UNITED ARAB EMIRATES ARE LOCKED IN A LITTLENOTICED DISPUTE OVER OWNERSHIP OF THREE PERSIAN GULF ISLANDS NEAR THE STRATEGIC STRAIT OF HORMUZ A DISPUTE THAT THE UAE HAS PUSHED ALL THE WAY TO THE UN SECRETARYGENERAL THE MOST IMPORTANT OF THE ISLANDS IS A STRATEGICALLY LOCATED ONE CALLED ABU MUSA WHICH THE UAE AND IRAN HAVE SHARED UNDER A 1971 AGREEMENT STARTING LAST SPRING IRAN BEGAN TO FLEX ITS MUSCLES AND EXPAND ITS SOVEREIGNTY BY REFUSING TO ALLOW FOREIGNERS WORKING FOR THE UAE TO STEP ONTO THE ISLAND UNLESS THEY HAD IRANIAN VISAS TINY ABU MUSA IS NO KUWAIT OF COURSE BUT THE DISPUTE HAS SOME SIMILARITIES TO THE IRAQIKUWAITI BORDER DISPUTE THAT LED TO THE IRAQI INVASION OF KUWAIT AND THOUGH THE UAE ISN'T A FORMAL AMERICAN ALLY THE US HAS REPEATEDLY SAID IT DOESN'T WANT THE SOVEREIGNTY OF PERSIAN GULF STATES COMPROMISED THUS LITTLE ABU MUSA COULD BE THE SOURCE OF SOME BIG TROUBLES THE BIGGER RISK FOR MR CLINTON THOUGH IS PROBABLY A LONGTERM DECLINE IN US IRANIAN RELATIONS AS TEHRAN TRIES TO EXPAND ITS INFLUENCE IN THE PERSIAN GULF AMONG THE ISLAMIC STATES OF THE FORMER SOVIET UNION AND IN THE ISLAMIC WORLD AT LARGE MR BILL FOR ONE WORRIES THAT THE CLINTON ADMINISTRATION AND THE US GENERALLY MAY FALL INTO A TRAP OF SEIZING ON IRAN AS THE AMERICAN ENEMY OF CHOICE NOW THAT COMMUNIST BLACK HATS HAVE BEEN CHASED OUT OF TOWN I'M WORRYING HE SAYS ABOUT THE FACT THAT WE'RE DEMONIZING IRAN AGAIN MR SEIB IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200108 930120 INAUGURATION A SPECIAL REPORT THE ISSUES PAY NOW BUY LATER THE NEW PRESIDENT FACES AN UNPLEASANT PREDICAMENT HE MUST INFLICT SHORTTERM PAIN FOR LONGTERM GAIN BY DAVID WESSEL BY THE TIME WE KNOW WHETHER BILL CLINTON DID A GOOD JOB ON THE ECONOMY THE FORMER ARKANSAS GOVERNOR WILL BE COLLECTING HIS PRESIDENTIAL PENSION ECONOMISTS TEACH THAT INVESTING IN EDUCATION TRAINING INFRASTRUCTURE AND RESEARCH AS MR CLINTON PROPOSES IS BOUND TO PAY OFF IN MORE RAPID ECONOMIC GROWTH AND AN IMPROVED STANDARD OF LIVING BUT AMERICANS PROBABLY WON'T BE ENJOYING THESE GAINS YET WHEN 1996 ROLLS AROUND IT'LL TAKE A GENERATION SAYS GAVIN WRIGHT AN ECONOMIC HISTORIAN AT STANFORD UNIVERSITY INDEED WARNS CHARLES SCHULZE A BROOKINGS INSTITUTION ECONOMIST WHO WAS JIMMY CARTER'S CHIEF ECONOMIC ADVISER VERY OFTEN THE THINGS YOU HAVE TO DO ARE PAINFUL AND THE BENEFICIAL RESULTS SHOW UP ONLY WELL AFTER THE NEXT ELECTION THAT'S CERTAINLY GOING TO BE TRUE IF MR CLINTON IS AS SERIOUS ABOUT REDUCING THE FEDERAL BUDGET DEFICIT AS HIS RECENT RHETORIC MAKES IT SOUND ECONOMISTS SAY THAT SHRINKING THE DEFICIT WILL HELP THE ECONOMY'S PROSPECTS FOR THE FUTURE BY FREEING UP MONEY FOR PRIVATE INVESTMENT BUT AS POLITICIANS KNOW SO WELL THE TAX INCREASES AND SPENDING REDUCTIONS REQUIRED WILL BE PAINFUL RIGHT AWAY LIKE SO MANY CORPORATE CHIEF EXECUTIVES MR CLINTON SAYS HE WANTS TO MANAGE FOR THE LONG TERM HOWEVER HE WILL BE JUDGED ON SHORTTERM RESULTS WE MUST NEVER FORGET THAT THE MOST PROFOUND PROBLEMS OF OUR ECONOMY ARE LONGTERM AND STRUCTURAL MR CLINTON SAID AT HIS ECONOMIC TEACHIN IN LITTLE ROCK ARK LAST MONTH IF WE INTEND TO FIX THINGS FOR THE LONG TERM WE MUST INVEST FOR THE LONG TERM THAT'S BOLD TALK FOR A MAN WHO WILL HAVE TO FACE THE VOTERS IN LESS THAN 48 MONTHS VOTERS HAVE A WAY OF HOLDING A PRESIDENT RESPONSIBLE FOR THE CURRENT STATE OF THE ECONOMY WHETHER OR NOT IT'S HIS FAULT IN A RECENT WALL STREET JOURNAL/NBC NEWS POLL NEARLY TWOTHIRDS OF THOSE SURVEYED SAID THEY BELIEVE THAT THE PRESIDENT HAS A GREAT DEAL OR A FAIR AMOUNT OF INFLUENCE OVER THE COURSE OF THE ECONOMY THE REMAINDER SAID HE HAS JUST SOME OR ALMOST NO INFLUENCE IF A PRESIDENT COULD TRULY CONTROL THE ECONOMY IN THE SHORT RUN IT MIGHT BE GEORGE BUSH TAKING THE OATH OF OFFICE ON THE STEPS OF THE CAPITOL TODAY THE ECONOMY WAS BEGINNING TO STRENGTHEN AROUND ELECTION DAY BUT IT WAS TOO LATE TO HELP MR BUSH IT'S A TRULY NONPARTISAN RECOVERY SAYS ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE IT'S SIX MONTHS TOO LATE TO HELP GEORGE BUSH AND SIX MONTHS TOO EARLY FOR BILL CLINTON TO CLAIM HE HAD ANYTHING TO DO WITH IT HOW MUCH INFLUENCE DOES THE PRESIDENT HAVE ON THE ECONOMY MORE THAN ZERO AND LESS THAN HE'D LIKE SAYS MR SCHULZE WHO RECENTLY PUBLISHED A HOWTO GUIDE TO MACROECONOMICS FOR POLICY MAKERS THINK ABOUT IT PRESIDENTS ALWAYS TRY TO INFLUENCE INTEREST RATES BY LECTURING THE FEDERAL RESERVE AND BESEECHING THE FINANCIAL MARKETS FOR UNDERSTANDING BUT THEY DON'T OFTEN SUCCEED PRESIDENTS TRY TO PERSUADE FOREIGN GOVERNMENTS TO ALTER THEIR ECONOMIC POLICIES IN WAYS THAT BENEFIT THE USBUT THAT'S A DELICATE AND OFTEN FUTILE GAME PRESIDENTS PROPOSE VOLUMINOUS BUDGETS THAT SEEK TO SET SPENDING PRIORITIES BUT CONGRESS IGNORES MUCH OF THE ADVICE A GOOD DEAL OF WHAT PASSES FOR MACROECONOMIC POLICY AMOUNTS TO USING TAX BREAKS TO SHIFT SPENDING FROM NEXT YEAR INTO THIS YEAR LIKE AN AUTO MAKER OFFERING REBATES GOVERNMENT HAS DEMONSTRATED THAT IT CAN USE TEMPORARY TAX BREAKS TO INDUCE BUSINESSES TO SPEED UP PLANS TO BUY EQUIPMENT OR GET CONSUMERS TO BUY A HOUSE THIS YEAR INSTEAD OF NEXT AFTER THE TAX BREAKS EXPIRE THOUGH SPENDING TENDS TO BE DEPRESSED GOVERNMENT POLICY CAN ALTER THE TIMING OF GROWTH GROW MORE NOW GROW LESS LATER SAYS ECONOMIST JOHN MAKIN OF THE AMERICAN ENTERPRISE INSTITUTE OF COURSE THAT DOESN'T STOP PRESIDENTS FROM USING THE OFFICE THEY OCCUPY TO TRY TO INFLUENCE PARTICULAR VOTERS MR WRIGHT THE STANFORD ECONOMIST HAS DOCUMENTED HOW THAT POLITICAL MASTER FRANKLIN DELANO ROOSEVELT INCREASED PUBLICWORKS SPENDING IN KEY STATES JUST BEFORE THE 1936 PRESIDENTIAL ELECTION AND AGAIN BEFORE THE 1938 CONGRESSIONAL ELECTIONS AND PRESIDENT BUSH ENGAGED IN A TRANSPARENT EFFORT TO WOO VOTERS BY PLEDGING TO REBUILD A MILITARY BASE IN FLORIDA THAT THE PENTAGON DIDN'T WANT AND BY ANNOUNCING THE SALE OF F15 JETS TO SAUDI ARABIA IN ST LOUIS WHERE THE PLANES ARE BUILT BUT SUCH MANEUVERS HARDLY INFLUENCE THE COURSE OF A 6 TRILLION ECONOMY WHEN PRESIDENTS SPRING A SURPRISE HOWEVER THEY CAN SOMETIMES SUBSTANTIALLY ALTER THE COURSE OF THE ECONOMY RICHARD NIXON DID IT WITH WAGE AND PRICE CONTROLS JIMMY CARTER DID IT WITH CONTROLS ON CREDIT THAT SHUT DOWN CONSUMER SPENDING FASTER THAN ANYONE IMAGINED WAS POSSIBLE THOSE ARE THE EXCEPTIONS THOUGH MORE OFTEN A PRESIDENT'S BEST HOPE IS TO USE HIS NOT INSIGNIFICANT ABILITY TO LIFT THE SPIRITS OF CONSUMERS AND BUSINESSES SO THAT THEY WILL BE MORE WILLING TO BORROW AND SPEND COMBINE ALL THE PERSUASIVE POWERS OF THE OFFICE ALL THE REGULATORY CLOUT ALL THE LEGISLATION THAT CAN BE JAMMED THROUGH CONGRESS AND PERHAPS A PRESIDENT CAN MAKE THE ECONOMY GROW TWOTENTHS OR THREETENTHS OF A PERCENTAGE POINT FASTER OVER ONE YEAR OR EVEN FOUR YEARS FEW WILL NOTICE THE CHANGE BUT IF MR CLINTON CAN IMPLEMENT POLICIES THAT CAUSE THE US ECONOMY TO GROW THREETENTHS OF A PERCENT FASTER FOR EACH OF THE NEXT 10 OR 15 YEARS THAT WILL MATTER BY 2008 JUST A DECADE AND A HALF FROM NOW THE DIFFERENCE BETWEEN A 22 ANNUAL GROWTH RATE AND A 25 GROWTH RATE AMOUNTS TO ABOUT 370 BILLION THAT'S ENOUGH MONEY TO MAKE THE ANNUAL INCOME OF EVERY AMERICAN HOUSEHOLD ROUGHLY 3000 HIGHER THAN IT WOULD OTHERWSE HAVE BEEN GOVERNMENT POLICY IS FAR FROM THE ONLY FACTOR IN DETERMINING LONGRUN GROWTH RATES OF AN ECONOMY NEW TECHNOLOGIES SUCCESSFULLY EMPLOYED CAN MAKE A HUGE DIFFERENCE SO CAN RELATIONS BETWEEN WORKERS AND EMPLOYERS BUT MR CLINTON CAN MAKE A DIFFERENCE IF HE PERSUADES CONGRESS TO CHANGE FEDERAL SPENDING AND OTHER GOVERNMENT POLICIES SO AS TO ENCOURAGE INVESTMENTS THAT PAY OFF IN THE FUTURE AND DISCOURAGE SPENDING ON PRESENTDAY WANTS IF PRESIDENTELECT CLINTON COULD MODERATE THE GROWTH IN HEALTHCARE SPENDING OR REMOVE THE EXCESSIVE LEVEL OF TAXATION FROM CAPITAL MAYBE HE COULD MAKE THE ECONOMY GROWTH ONETENTH OR TWOTENTHS OF A PERCENTAGE POINT FASTER WHICH OVER 20 YEARS WOULD BE SIGNIFICANT SAYS MR MAKIN THE AMERICAN ENTERPRISE INSTITUTE ECONOMIST AT MR CLINTON'S LITTLE ROCK GATHERING ROBERT SOLOW THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY PROFESSOR WHO WON A NOBEL PRIZE FOR HIS RESEARCH INTO ECONOMIC GROWTH DESCRIBED THE UNDERLYING PROBLEMS OF THE ECONOMY AS WEAK PRODUCTIVITY WHICH MEANS THAT THE AVERAGE FAMILY'S LIFE CAN IMPROVE ONLY SLOWLY AND INCREASING INEQUALITY WHICH MEANS THAT FOR MANY FAMILIES LIFE GETS WORSE NOT BETTER HE SAID THAT THE ONLY SOLUTION TO THE PRODUCTIVITY PROBLEM IS INVESTMENT IN MODERN INDUSTRIAL EQUIPMENT IN RESEARCH AND DEVELOPMENT IN TRANSPORTATION AND COMMUNCIATION INFRASTRUCTURE AND IN EDUCATING AND TRAINING OUR PEOPLE THE EDUCATION AND TRAINING PART IS DOUBLY IMPORTANT IT IS THE ONLY REALISTIC CHANCE WE HAVE TO IMPROVE THE EARNING POWER OF THE POOR SO THAT THEY CAN SHARE FULLY IN RISING INCOME THE GOVERNMENT CAN DO SOMETHING ON ALL THOSE FRONTS MR CLINTON ARGUES AND AT LEAST SOME ECONOMISTS AGREE WE USED TO THINK THAT PRODUCTIVITY GROWTH WAS PRETTY AUTOMATIC SAYS STANFORD'S MR WRIGHT WE THOUGHT THAT WE HAD ROUTINIZED THE INDUSTRIAL RESEARCH LABS AND THAT THEY PRODUCED THE TECHNOLOGICAL CHANGE AND THE PRODUCTIVITY BUT THE SLOWDOWN IN PRODUCTIVITY OVER THE PAST 20 YEARS MR WRIGHT ADDS SUGGESTS THAT IT ISN'T AUTOMATIC HE ARGUES THAT US LEADERSHIP IN HIGH TECHNOLOGY AFTER WORLD WAR II REFLECTS NOT ONLY THE DEVASTATION OF GERMANY AND JAPAN BUT ALSO THE SUCCESS OF FEDERALLY SPONSORED RESEARCH AND EDUCATION THE WORLD HAS CHANGED SINCE THEN HOWEVER THE INTERNATIONALIZATION OF TRADE BUSINESS AND TECHNOLOGY MAKES IT TOUGHER FOR ANY ONE NATION TO CREATE NEW TECHNOLOGY THAT WILL STAY CONTAINED WITHIN NATIONAL BORDERS FOR LONG MR WRIGHT SAYS OF COURSE THAT DOESN'T MEAN MR CLINTON IS IMPOTENT JUST THAT HE NEEDS TO FIND MODERN SOLUTIONS FOR MODERN PROBLEMS BUT AGAIN EVEN IF HE FINDS THEM AMERICANS WON'T SEE THE RESULTS ANYTIME SOON THE BEST THING THAT BILL CLINTON CAN HOPE FOR SAYS JOHN WHITE WHO WAS THE ARCHITECT OF ROSS PEROT'S DEFICIT PLAN AND IS NOW AT HARVARD'S KENNEDY SCHOOL OF GOVERNMENT IS THAT WE'LL ALL ERECT A STATUE OF HIM 20 YEARS FROM NOW IF MR CLINTON SERVES TWO TERMS HE WILL BE ONLY 54 YEARS OLD WHEN HE LEAVES OFFICE IF THE ACTUARIAL TABLES ARE RIGHT HE'LL PROBABLY BE AROUND TO ADMIRE THE STATUE MR WESSEL IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200106 930120 REVIEW & OUTLOOK EDITORIAL BILL CLINTON'S WASHINGTON BILL CLINTON TAKES OFFICE WITH APPROVAL RATINGS ABOVE 70 REFLECTING THE FACT THAT MOST AMERICANS ARE HOPEFUL ON THIS INAUGURATION DAY AT THE SAME TIME A MOOD OF ANXIOUSNESS ABOUT THE SHAPE OF THE NEW GOVERNMENT IS EVIDENT AMONG DEMOCRATS AND SOME VOTERS WHO SUPPORTED MR CLINTON'S SUCCESSFUL CANDIDACY AGAINST GEORGE BUSH SOME OF THAT ANXIETY SURELY WILL LIFT AS THE PRESIDENT'S INAUGURAL SPEECH RESONATES AMONG HIS AUDIENCE MR CLINTON HAS BEEN THINKING A LONG TIME ABOUT WHAT HE WOULD WANT TO SAY TO THE COUNTRY ABOUT ITS VALUES AND PURPOSES IF HE EVER ASCENDED TO ITS HIGHEST OFFICE AND WE DON'T DOUBT THAT HIS INAUGURAL MESSAGE TODAY WILL STIR MANY LISTENERS WASHINGTON HOWEVER IS A DIFFERENT PLACE THAN WHEN JFK TOOK COMMAND OF IT IN 1961 THAT DIFFERENCE IS VERY MUCH WORTH THINKING ABOUT AS BILL CLINTON STRIVES TO SHAPE AND LEAD A DEMOCRATIC ADMINISTRATION A NUMBER OF ARTICLES HAVE APPEARED THE PAST WEEK TO SUGGEST THAT THE CLINTON PRESIDENCY ISN'T GOING TO HIT THE GROUND RUNNING DUE TO THE SLOW PACE OF JOB APPOINTMENTS AND TO UNCERTAINTY OVER THE SHAPE OF THE ADMINISTRATION'S PROGRAMS WE DON'T SHARE THE VIEW THAT THIS IS PRIMARILY THE RESULT OF MR CLINTON'S PROBLEM WITH SCHEDULES OR HIS INSTINCT TO INVOLVE HIMSELF IN THE DETAILS THE SOURCE OF THE PROBLEM GOES BACK A GOOD 12 YEARS IF THE DEMOCRATIC PARTY IS HAVING DIFFICULTY LAUNCHING ITS OWN SHIP OF STATE IT IS BECAUSE THE PARTY'S MOST ACTIVE MEMBERS IN WASHINGTON HAVE HAD SO LITTLE INTEREST IN BUILDING A FRAMEWORK FOR GOVERNING INSTEAD THE WASHINGTON DEMOCRATIC ESTABLISHMENT HAS SPENT MOST OF ITS ENERGIES DURING THIS PERIOD THWARTING OR UNDERMINING THE PEOPLE AND POLICIES OF THE REAGAN PRESIDENCY AND THE SUCCESSOR BUSH PRESIDENCY THERE HAS BEEN LITTLE EFFORT TO CREATE A LOYAL OPPOSITION THAT IS AN OUTOFOFFICE PARTY THAT DISCUSSES SHAPES AND PROMOTES TO THE ELECTORATE AN ALTERNATIVE SET OF PUBLIC POLICIES INSTEAD THE DEMOCRATS PARTICULARLY SINCE GEORGE MITCHELL SUCCEEDED ROBERT BYRD AS SENATE MAJORITY LEADER HAVE USED THE LEGISLATIVE MACHINERY AND THE PROPAGANDA MILLS TO ENSURE THAT THE EXECUTIVE BRANCH WOULD NOT BE ABLE TO FUNCTION OR COULD DO SO ONLY WITH GREAT DIFFICULTY THIS POINT NEEDS TO BE REFINED IT IS UNFAIR SIMPLY TO SAY THE DEMOCRATS CONCENTRATED THEIR ENERGIES ON THWARTING THE REPUBLICANS IT WAS THE MOST LIBERAL WING OF THE PARTY THAT COULD NOT ABIDE THE IDEA OF A REAGANBASED REPUBLICAN POLITICS TWO SIGNIFICANT CASUALTIES OF THE POLITICS OF RESISTANCE ARE IN DEFENSE AND FOREIGN AFFAIRS MODERATE DEMOCRATS SUCH AS SAM NUNN DAVID BOREN CHARLES ROBB DAVE MCCURDY AND LES ASPIN WERE SHOVED ASIDE WHEN THE PARTY EMBARKED ON THE KIND OF POLICY OFFENSIVES THAT CREATED ITS PUBLIC IMAGE INSTEAD OF A REASONED DEMOCRATIC CRITIQUE OF THE REAGAN FOREIGN POLICY WE GOT THE BOLAND AMENDMENTS THE ENDLESS IRANCONTRA HEARINGS AND THE OCTOBER SURPRISE BY SPENDING SO MUCH EFFORT ON POLITICAL BLOCKING ACTIONS IN FOREIGN AND DOMESTIC AFFAIRS THE PARTY MADE IT DIFFICULT FOR ITS MORE SERIOUS POLICY TYPES TO COHERE INTO AN IDENTIFIABLE CORPS OF POTENTIAL ADMINISTRATORS THE UNENDING STRING OF SPECIAL PROSECUTORS THROUGH THE REAGANBUSH YEARS THE RAUCOUS CONFIRMATION HEARINGS AND ALL THE BUDGETS DEAD ON ARRIVAL MAY HAVE DAMAGED THOSE PRESIDENCIES BUT MAY ALSO HAVE DAMAGED THE DEMOCRATS' OWN PREPAREDNESS TO GOVERN THIS MAKES THE CLINTON ACHIEVEMENT ALL THE MORE REMARKABLE MR CLINTON'S CANDIDACY GREW FROM A RELATIVELY OBSCURE POLICYORIENTED GROUP CALLED THE DEMOCRATIC LEADERSHIP COUNCIL MORE POPULAR IN STATEHOUSES THAN IN WASHINGTON WHOSE CENTRIST AND CONSTRUCTIVE CAMPAIGN ATTRACTED SIGNIFICANT SUPPORT FROM THE AMERICAN ELECTORATE AMONG REAGAN REPUBLICANS THIS HAS ALWAYS BEEN CALLED THE POWER OF IDEAS IDEAS HOWEVER NEED TO BE CARRIED FORWARD BY PEOPLE NOW ONE OF THE PEOPLE QUALIFIED TO CARRY PRESIDENT CLINTON'S IDEAS ZOE BAIRD HAS BEEN UNDERMINED BY PRECISELY THE SAME TECHNIQUES THAT THE DEMOCRATIC FACTIONS USED AGAINST AN ED MEESE REMEMBER URSULA MEESE'S UNDISCLOSED LOAN FOR THEM MS BAIRD'S CRIME ISN'T THE TAXES BUT THAT SHE'S NOT ONE OF THEM THIS INSTINCTIVELY ATTACKORIENTED BEHAVIOR BY THE LIBERAL DEMOCRATS AND INTEREST GROUPS IN WASHINGTON IS WHAT MOST CAUSES ANXIETY AS MR CLINTON TAKES OVER THE EXECUTIVE BRANCH IT MAY BE TRUE THAT BILL CLINTON HIMSELF WILL HAVE TO DECIDE WHETHER HE WANTS A GOVERNMENT DRIVEN BY THE DLC'S COGWHEELS OR THE LIBERALS' MILLSTONES BUT IT IS EVEN TRUER THAT THE YOUNG CLINTON PRESIDENCY NEEDS THE ACTIVE PUBLIC SUPPORT OF DEMOCRATS WHO TRULY WISH HIM WELL 9301200105 930120 WHO'S NEWS MATRIX PHARMACEUTICAL INC MATRIX PHARMACEUTICAL INC MENLO PARK CALIF JULIUS L PERICOLA 64 YEARS OLD A FORMER EXECUTIVE VICE PRESIDENT OF BRISTOLMYERS SQUIBB CO WAS NAMED A DIRECTOR OF THIS DRUG COMPANY HIS APPOINTMENT INCREASES THE BOARD TO SIX MEMBERS 9301200103 930120 BUSINESS BRIEF AMERICAN HOME PRODUCTS CORP QUARTERLY EARNINGS FELL 3 DUE TO ACCOUNTING CHANGES AMERICAN HOME PRODUCTS CORP SAID FOURTHQUARTER NET INCOME DROPPED 3 BECAUSE OF ACCOUNTING CHANGES WHILE SALES ROSE 10 AIDED BY STRONG GROWTH IN US PHARMACEUTICALS NET DECLINED TO 3616 MILLION OR 116 A SHARE FROM THE YEAREARLIER 3726 MILLION OR 118 A SHARE SALES ROSE TO 2 BILLION FROM 182 BILLION THE PHARMACEUTICAL AND CONSUMER HEALTH CARE PRODUCTS COMPANY SAID IN NEW YORK THAT THE LATEST QUARTER REFLECTED A HIGHER EFFECTIVE TAX RATE FROM ADOPTION OF STANDARDS FOR ACCOUNTING FOR INCOME TAXES AND FOR POSTRETIREMENT BENEFITS THE COMPANY SAID ITS EFFECTIVE TAX RATE IN 1993 WILL BE ABOUT 2627 ASSUMING NO CHANGES IN THE TAX RATES OF THE PRINCIPAL COUNTRIES IN WHICH IT OPERATES 9301200102 930120 BUSINESS BRIEF EATON CORP CHARGES OF 290 MILLION SET TO REFLECT RETIREE BENEFITS EATON CORP SAID IT WILL TAKE NONCASH CHARGES TOTALING 290 MILLION OR 840 A SHARE BECAUSE OF A NEW ACCOUNTING RULE REQUIRING THAT COMPANIES FULLY ACCRUE THE COST OF EMPLOYEES' POSTRETIREMENT HEALTH CARE AND OTHER BENEFITS THE CLEVELANDBASED COMPANY SAID IT WILL RESTATE RESULTS FROM THE FIRST QUARTER OF 1992 TO TAKE A ONETIME CHARGE OF 274 MILLION OR 794 A SHARE TO ACCOUNT FOR THE EXPENSE THAT WOULD HAVE ACCRUED THROUGH 1991 MOREOVER THE COMPANY WILL RESTATE ITS 1992 RESULTS TO REFLECT THE CONTINUING EFFECT OF THE CHANGE ON CONTINUING OPERATIONS RESULTING IN A CHARGE TO 1992 EARNINGS OF 16 MILLION OR 46 CENTS A SHARE THE COMPANY MAKES TRUCK AND ENGINE PARTS ELECTRICAL EQUIPMENT AND CONTROLS FOR THE NINE MONTHS EATON REPORTED NET INCOME OF 104 MILLION OR 302 A SHARE ON SALES OF 291 BILLION EATON SAID IT ALSO ADOPTED A SEPARATE ACCOUNTING RULE AFFECTING ACCRUAL OF DEFERRED INCOME TAXES BUT THE RESULTING GAIN WASN'T MATERIAL 9301200101 930120 VARITY CORP SETS STOCK PROGRAM BUFFALO VARITY CORP SAID IT ESTABLISHED A PROGRAM TO ALLOW SMALL HOLDERS OF COMMON AND PREFERRED STOCK TO SELL THEIR SHARES WITHOUT PAYING COMMISSIONS THE PROGRAM APPLIES TO HOLDERS WHO OWNED FEWER THAN 100 SHARES ON JAN 11 AND IS SCHEDULED TO EXPIRE FEB 25 SHARES SOLD THROUGH THE PROGRAM WILL BE RESOLD BY A BROKERAGE FIRM AND WON'T BE HELD BY THE MAKER OF AUTOMOTIVE PARTS FARM MACHINERY AND OTHER INDUSTRIAL MACHINERY HOLDERS WOULD HAVE TO SELL ALL THEIR SHARES AND WILL RECEIVE A PRICE BASED ON THE AVERAGE SELLING PRICE OF ALL SHARES SOLD THROUGH THE PROGRAM 9301200098 930120 LETTERS TO THE EDITOR BUFFALO BILL CODY MEDAL OF HONOR WINNER RUTH RUDNER'S BUFFALO BILL RIDES HIGH AGAIN IN THE TOWN HE BUILT LEISURE & ARTS DEC 15 MAKES NO MENTION OF CODY'S HIGHEST AWARD THE MEDAL OF HONOR CODY EARNED IT FOR HIS ACTIONS AS AN ARMY SCOUT DURING A SKIRMISH WITH INDIANS IN 1872 IN 1917 SHORTLY AFTER CODY DIED A REVIEW BOARD RULED THAT AS A CIVILIAN HE WAS INELIGIBLE FOR THE MEDAL AND ORDERED HIS NAME STRICKEN FROM THE ROLL OF MEDAL OF HONOR WINNERS SEVENTYTWO YEARS LATER IN 1989 THE ARMY REVERSED ITS DECISION AND RESTORED HIS NAME TO THE ROLL 9301200097 930120 BUSINESS BRIEF PAINEWEBBER 4THQUARTER NET FELL 12 POSSIBLE SIGN WALL STREET BOOM IS EASING NEW YORK PAINEWEBBER GROUP INC PERHAPS SIGNALING A SLOWING OF WALL STREET'S PROFIT BOOM SAID FOURTHQUARTER NET INCOME FELL 12 AS REVENUE FROM TRADING AND INVESTMENT BANKING DECLINED THE SLOWDOWN AT THE NATION'S FOURTHLARGEST BROKERAGE FIRM SUGGESTS OTHER BIG SECURITIES FIRMS MAY ALSO REPORT WEAKER QUARTERLY EARNINGS STILL ANALYSTS EXPECT WALL STREET SECURITIES FIRMS TO POST NEARLY 7 BILLION IN PRETAX PROFITS FOR 1992 A RECORD FOR THE SECOND CONSECUTIVE YEAR IN AN EFFORT TO KEEP EXPENSES DOWN PAINEWEBBER SAID IT BEGAN A HIRING FREEZE NOV 10 AMONG ADMINISTRATIVE AND SUPPORT STAFF THE FIRM ALSO IS ELIMINATING BROKERAGE OPERATIONS IN FOUR OF ITS AGRICULTURAL COMMODITIES BUSINESSES SHAVING 40 EMPLOYEES FROM A STAFF OF 125 THE COMPANY CITED POOR GROWTH PROSPECTS FOR FUTURES TRADING IN THE FOUR COMMODITIES COFFEE SUGAR COCOA AND COTTON BUT SAID IT WOULD REMAIN ACTIVE IN GRAIN AND ORANGE JUICE FUTURES TRADING PAINEWEBBER'S RESULTS FOR ALL OF 1992 ROSE TO RECORD LEVELS BUT INVESTORS REACTED TO THE QUARTER'S RESULTS SENDING THE FIRM'S SHARES DOWN 150 TO 25 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ANALYSTS SAID THE DROP MAY HAVE BEEN EXACERBATED BY AN INACCURATE NEWS REPORT INDICATING THAT EARNINGS FELL FAR BELOW EXPECTATIONS NET FOR THE QUARTER DECLINED TO 414 MILLION OR 78 CENTS A SHARE FROM 469 MILLION OR 96 CENTS A SHARE A YEAR EARLIER TOTAL REVENUE ROSE NEARLY 1 TO 836 MILLION REVENUE FROM TRADING EASED 38 HOWEVER HURT BY AN 11 MILLION LOSS IN ARBITRAGE TRADING INVESTMENT BANKING REVENUE FELL NEARLY 13 CHAIRMAN DONALD B MARRON SAID IN AN INTERVIEW THE FIRM IS CAUTIOUSLY OPTIMISTIC ABOUT 1993 CAUTIOUS ABOUT THE NEW CLINTON ADMINISTRATION'S IMPACT ON FINANCIAL MARKETS AND OPTIMISTIC ABOUT THE STRENGTH OF THE FIRM PAINEWEBBER BEGINS THE YEAR WITH RECURRING FEE INCOME FROM RETAIL SALES 28 HIGHER THAN A YEAR EARLIER TOTAL CAPITAL IN 1992 ROSE TO 22 BILLION FROM 19 BILLION WHILE THE NUMBER OF BROKERS INCREASED TO 5125 FROM 4700 THE BROKERAGE FIRM HOWEVER WILL LIMIT HIRING THIS YEAR TO TOPPRODUCING BROKERS INVESTMENT BANKERS AND FUND MANAGERS FOR THE YEAR PAINEWEBBER SAID PROFIT LEAPED 41 TO A RECORD 2132 MILLION OR 424 A SHARE FROM 1507 MILLION OR 315 A SHARE IN 1991 TOTAL REVENUE CLIMBED 63 TO 34 BILLION FROM 32 BILLION IN 1991 9301200096 930120 LETTERS TO THE EDITOR DON'T FOCUS ON SINGLE BREASTCANCER GENE YOUR DEC 11 PAGEONE ARTICLE STALKING A KILLER SCIENTISTS NEAR THE END OF RACE TO DISCOVER A BREASTCANCER GENE WAS EXCITING AND SHOULD BE HIGHLY LAUDED HOWEVER A SINGLE DEFECTIVE GENE WILL NOT EXPLAIN ALL BREAST CANCERS BREAST CANCERS ARE NOT ALL THE SAME DISEASE THEY VARY IN PATHOLOGICAL EXPRESSION AS WELL AS IN TYPES OF EFFECTIVE TREATMENT MOREOVER THE STATISTICS REGARDING VARIOUS TYPES OF BREAST CANCER SUGGEST THAT MORE THAN ONE GENETIC DEFECT IS INVOLVED FOR EXAMPLE THOSE WOMEN WITH THE BREAST PRECANCERS LOBULAR CARCINOMA IN SITU AND DUCTAL CARCINOMA IN SITU HAVE A 3040 AND A 6575 CHANCE RESPECTIVELY OF DEVELOPING INVASIVE BREAST MALIGNANCIES THE STATISTICS SUGGEST THAT MINIMALLY ONETHIRD AND TWOTHIRDS REQUIRED GENETIC DEFECTS ARE PRESENT IN THE TWO TYPES OF BREAST PRECANCERS RESPECTIVELY EVEN THOSE CARRIERS OF THE GENETIC MARKER FOR FAMILIAL TYPE OF BREAST CANCER HAVE ONLY AN 85 NOT A 100 CHANCE OF DEVELOPING INVASIVE MALIGNANCIES ALTHOUGH THE REPORTED BREAKTHROUGHS IN BREAST CANCER RESEARCH ARE EXCITING IT WOULD BE DETRIMENTAL TO POTENTIAL BREAST CANCER VICTIMS IF THE QUEST FOR OTHER GENETIC MARKERS AS WELL AS FOR ENVIRONMENTAL FACTORS THAT MUTATE THE CULPRIT GENES WERE SLOWED AS A RESULT OF THE FOCUS ON A SINGLE INHERITED GENE 9301200095 930120 POLITICS & POLICY TECHNOLOGY ADVOCATE FIRED UNDER BUSH IS CLINTON'S TOP CANDIDATE FOR SUCH POST BY BOB DAVIS AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CRAIG FIELDS ONE OF THE NATION'S MOST PROMINENT ADVOCATES OF INVOLVING GOVERNMENT IN THE DEVELOPMENT OF COMMERCIAL TECHNOLOGY IS PRESIDENTELECT CLINTON'S TOP CANDIDATE TO FILL THE COMMERCE DEPARTMENT'S TOP TECHNOLOGY POST MR FIELDS BECAME A SYMBOLIC MARTYR TO THE CAUSE OF A STRONG GOVERNMENT ROLE IN RESEARCHANDDEVELOPMENT PROJECTS WHEN HE WAS FIRED EARLY IN THE BUSH ADMINISTRATION AS DIRECTOR OF THE PENTAGON'S DEFENSE ADVANCED RESEARCH PROJECTS AGENCY OR DARPA MR FIELDS'S ACTIVISM WHICH WAS REJECTED BY THE BUSH ADMINISTRATION HAS BEEN EMBRACED BY MR CLINTON AND IS LIKELY TO BECOME AN IMPORTANT THEME OF HIS ADMINISTRATION THE POSSIBILITY THAT MR FIELDS MIGHT TAKE THE POST OF UNDERSECRETARY FOR TECHNOLOGY AT THE COMMERCE DEPARTMENT IS AN INDICATION THAT MR CLINTON INTENDS TO MAKE GOOD ON HIS PLEDGE TO END THAT AGENCY'S REPUTATION AS A BACKWATER AND MAKE IT MORE OF A POLICY POWERHOUSE BUT MR FIELDS WHO CURRENTLY HEADS MICROELECTRONICS & COMPUTER TECHNOLOGY CORP A PRIVATE RESEARCH GROUP IN AUSTIN TEXAS COULDN'T BE REACHED FOR COMMENT AND IT WASN'T CLEAR WHETHER HE WOULD ACCEPT THE POST SOME OF HIS CLOSE ASSOCIATES SAID MR FIELDS MIGHT WANT TO REMAIN AT THE CONSORTIUM FOR SEVERAL MORE YEARS AND HARBORS DOUBTS THAT THE COMMERCE DEPARTMENT CAN BE TRANSFORMED INTO AN IMPORTANT POLICYMAKING CENTER MR CLINTON'S FIRST CHOICE FOR SECRETARY OF COMMERCE WAS JOHN YOUNG THE FORMER CHIEF EXECUTIVE OFFICER OF HEWLETTPACKARD CO BUT MR YOUNG TURNED DOWN THE JOB CITING POSSIBLE CONFLICTS OF INTEREST BECAUSE OF HIS LARGE STOCKHOLDINGS AND PRIVATELY BECAUSE HE WASN'T SURE THE AGENCY COULD BECOME A MAJOR PLAYER IN HIS FIRST DAY IN OFFICE TODAY MR CLINTON IS EXPECTED TO ISSUE AT LEAST ONE EXECUTIVE ORDER DEALING WITH ABORTION AMONG THE ACTIONS UNDER CONSIDERATION ARE RESCINDING THE GAG ORDER THAT BARS FEDERALLY FUNDED CLINICS FROM PROVIDING ABORTION COUNSELING LIFTING THE MORATORIUM ON FEDERAL FUNDING FOR FETALTISSUE TRANSPLANT RESEARCH AND REVERSING A POLICY THAT PROHIBITS THE USE OF US FOREIGN AID TO SUPPORT ORGANIZATIONS THAT PROMOTE ABORTION MEANWHILE THE CLINTON TEAM CONTINUED STAFFING THE MAJOR AGENCIES ESPECIALLY IN THE AREA OF NATIONAL SECURITY AT THE STATE DEPARTMENT WARREN CHRISTOPHER THE DESIGNATED SECRETARY NAMED 13 SENIOR OFFICIALS AND AT THE DEFENSE DEPARTMENT CLINTON AIDES HAVE ASKED FIVE CURRENT OFFICIALS TO REMAIN IN PLACE ON AN INTERIM BASIS AT THE STATE DEPARTMENT AS EXPECTED PETER TARNOFF PRESIDENT OF THE COUNCIL ON FOREIGN RELATIONS AND FORMER TOP AIDE IN THE CARTER STATE DEPARTMENT WAS CHOSEN TO BE UNDERSECRETARY FOR POLITICAL AFFAIRS JOAN SPERO A TRADE EXPERT WITH AMERICAN EXPRESS CO WAS NAMED UNDERSECRETARY FOR ECONOMIC AFFAIRS LYNN DAVIS AN ARMSCONTROL EXPERT AT RAND CORP AND A FORMER CARTER PENTAGON AIDE WAS CHOSEN TO BE UNDERSECRETARY FOR INTERNATIONAL SECURITY AND FORMER COLORADO SEN TIM WIRTH WHO HAD BEEN A LEADING CANDIDATE FOR ENERGY SECRETARY WAS NAMED A COUNSELOR TO THE DEPARTMENT AND IS EXPECTED TO BE AN UNDERSECRETARY CONGRESSIONAL OFFICIALS SAID THE EXPECTED APPOINTMENT OF CUBANAMERICAN LAWYER MARIO BAEZA TO BE ASSISTANT SECRETARY FOR LATIN AMERICA IS NOW ON HOLD LEADERS OF THE CONSERVATIVE CUBANAMERICAN COMMUNITY AND SEVERAL CONGRESSMEN INCLUDING WESTERN HEMISPHERE SUBCOMMITTEE CHAIRMAN ROBERT TORRICELLI D NJ COMPLAINED TO THE TRANSITION TEAM THAT MR BAEZA WAS TOO SOFT ON CUBAN LEADER FIDEL CASTRO MR BAEZA A PARTNER WITH THE NEW YORK FIRM DEBEVOISE & PLIMPTON VISITED HAVANA LAST JUNE AS PART OF A SEMINAR ON BUSINESS OPPORTUNITIES IN CUBA DURING THE PRESIDENTIAL CAMPAIGN MR CLINTON ENDORSED LEGISLATION TIGHTENING THE TRADE EMBARGO WITH CUBA AND THE ANTICASTRO CUBANAMERICAN COMMUNITY CONTRIBUTED HEAVILY TO HIS CAMPAIGN MR BAEZA WHO IS BLACK HAS BEEN CHAMPIONED BY COMMERCE SECRETARYDESIGNATE RON BROWN AND CLINTON TRANSITION CHAIRMAN VERNON JORDAN AT THE DEFENSE DEPARTMENT THE OFFICIALS WHO WERE ASKED TO REMAIN ARE JOHN SHANNON UNDERSECRETARY OF THE ARMY MARTIN FAGA THE ASSISTANT AIR FORCE SECRETARY FOR SPACE MICHAEL DONLEY ASSISTANT AIR FORCE SECRETARY FOR FINANCIAL MANAGEMENT JAMES LOCHER THE ASSISTANT SECRETARY OF DEFENSE FOR SPECIAL OPERATIONS AND VICTOR REIS DIRECTOR OF DEFENSE RESEARCH AND ENGINEERING THE CLINTON TEAM ALSO ASKED FORMER ASTRONAUT SALLY RIDE TO HEAD THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BUT SHE TURNED DOWN THE JOB SAID NASA OFFICIALS THE CURRENT NASA ADMINISTRATOR DANIEL GOLDIN HAS WRITTEN TO CLINTON TRANSITION OFFICIALS SAYING HE IS WILLING TO STAY IN HIS JOB AT LEAST TEMPORARILY BUT HE HASN'T RECEIVED AN ANSWER SO FAR TREASURY SECRETARYDESIGNATE LLOYD BENTSEN ALSO CONTINUES TO FILL OUT HIS STAFF MICHAEL LEVY WHO HAS BEEN MR BENTSEN'S ADMINISTRATIVE ASSISTANT IN THE SENATE IS EXPECTED TO BE NOMINATED TO BE THE TREASURY'S TOP LOBBYIST AS ASSISTANT SECRETARY FOR LEGISLATIVE AFFAIRS MR BENTSEN ALSO IS EXPECTED TO BRING ALONG HIS LONGTIME SPOKESMAN JACK DEVORE AS ASSISTANT SECRETARY FOR PUBLIC AFFAIRS JAMES HOLDEN A TAX LAWYER AT STEPTOE & JOHNSON IN WASHINGTON TURNED DOWN AN OFFER TO SERVE AS ASSISTANT SECRETARY FOR TAX POLICY ACCORDING TO TRANSITION AND OTHER SOURCES MR HOLDEN WHO WOULDN'T COMMENT IS SAID TO HAVE CITED A CONFLICT OF INTEREST BECAUSE HE REPRESENTS A MAJOR COMPANY IN A CASE PENDING BEFORE THE INTERNAL REVENUE SERVICE AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TERRENCE DUVERNAY EXECUTIVE DIRECTOR OF THE GEORGIA HOUSING AND FINANCE AUTHORITY IS POISED TO BE NAMED DEPUTY SECRETARY IN ADDITION ANDREW CUOMO WHO HAS WORKED ON THE CLINTON TRANSITION TEAM AND IS THE SON OF NEW YORK GOV MARIO CUOMO IS EXPECTED TO GET A TOP JOB PERHAPS ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT BARRY ZIGAS THE EXECUTIVE DIRECTOR OF THE LOW INCOME HOUSING COALITION A NONPROFIT HOUSING ADVOCACY GROUP IS A LEADING CANDIDATE FOR ASSISTANT SECRETARY FOR POLICY DEVELOPMENT AND RESEARCH MEANWHILE GEORGE LATIMER THE FORMER MAYOR OF ST PAUL MINN AND CURRENTLY THE DEAN OF THE HAMLINE UNIVERSITY SCHOOL OF LAW IS SAID TO BE UNDER CONSIDERATION FOR ASSISTANT SECRETARY FOR INTERGOVERNMENTAL AFFAIRS AND POSSIBLY FOR CONGRESSIONAL AFFAIRS FOR HEAD OF THE FEDERAL HOUSING ADMINISTRATION THE TOP CONTENDERS INCLUDE AMY ANTHONY A FORMER TOP MASSACHUSETTS HOUSING OFFICIAL DURING THE DUKAKIS ADMINISTRATION MARILYN MELKONIAN A HUD OFFICIAL IN THE CARTER ADMINISTRATION AND NOW A PRIVATE DEVELOPER IN WASHINGTON AND LARRY DALE EXECUTIVE DIRECTOR OF THE NATIONAL HOUSING IMPACT DIVISION OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AT THE COMMERCE DEPARTMENT'S NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION WHICH SETS TELECOMMUNICATIONS POLICY THE LEADING CANDIDATES FOR DIRECTOR ARE LARRY IRVING A TELECOMMUNICATIONS AIDE AT THE HOUSE ENERGY AND COMMERCE COMMITTEE AND RICHARD NEUSTADT JR A FORMER CARTER ADMINISTRATION OFFICIAL WHO IS A TELECOMMUNICATIONS ENTREPRENEUR SEPARATELY THE CLINTON TEAM IS SERIOUSLY CONSIDERING MOVING THE PRESS BRIEFING ROOM WHICH FOR DECADES HAS BEEN IN THE WEST WING OF THE WHITE HOUSE TO A LOCATION IN THE OLD EXECUTIVE OFFICE BUILDING NEXT DOOR THE SPACE WOULD BE USED FOR ADDITIONAL STAFF OFFICES LAURIE MCGINLEY CONTRIBUTED TO THIS ARTICLE 9301200094 930120 CABOT OIL & GAS SETS PLANS HOUSTON CABOT OIL & GAS CORP SAID IT WILL SPEND 506 MILLION FOR DRILLING ACQUISITIONS AND EXPLORATION THIS YEAR UP 18 FROM A YEAR AGO THE COMPANY PLANS TP DRILL 105 WELLS IN ITS MAJOR OPERATING AREAS 72 IN THE APPALACHIAN BASIN AND 33 IN THE ANADARKO BASIN 9301200093 930120 KODAK EXPECTS SLOW GROWTH IN CORE BUSINESS WEAKNESS IN PHOTOGRAPHY WILL LEAD TO R&D CUTS AND REVAMPING ABROAD BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO IN A REVERSAL OF STRATEGY SAID IT EXPECTS SLOWER GROWTH IN ITS CORE PHOTOGRAPHY BUSINESS AND WILL ELIMINATE MANY RELATED RESEARCH PROJECTS AND RESTRUCTURE SOME OVERSEAS OPERATIONS THE COMPANY NOW EXPECTS THE PHOTO BUSINESS TO EXPAND AT A SLUGGISH 2 TO 4 A YEAR INSTEAD OF ROUGHLY DOUBLE THAT RATE AS THE COMPANY HAD ASSUMED FOR SEVERAL YEARS ANALYSTS SAID IT'S A BELATED RECOGNITION THAT KODAK IS NO LONGER GROWING ITS CORE BUSINESS SAID DEAN WITTER REYNOLDS INC ANALYST EUGENE GLAZER SEPARATELY CHAIRMAN KAY WHITMORE SAID HE WILL ASK THE BOARD TO FORM A SPECIAL COMMITTEE OF INDEPENDENT DIRECTORS TO HELP SENIOR MANAGEMENT AS WE DRIVE TO INCREASE SHAREHOLDER VALUE SUCH COMMITTEES HAVE BEEN FORMED AT A NUMBER OF COMPANIES IN THE WAKE OF THE BOARDROOM REVOLT AT GENERAL MOTORS CORP WHERE OUTSIDE DIRECTORS ON THE BOARD KICKED OUT MANAGEMENT AFTER THE ANNOUNCEMENTS YESTERDAY KODAK SHARES ROSE 50 CENTS TO 49375 IN LATE NEW YORK STOCK EXCHANGE TRADING ON VERY HEAVY VOLUME OF SIX MILLION SHARES THE LATEST MOVES FOLLOW THE APPOINTMENT LAST WEEK OF HONEYWELL INC FORMER CHIEF FINANCIAL OFFICER CHRISTOPER J STEFFEN AS KODAK'S NEW FINANCIAL CHIEF MARKING THE FIRST TIME THE ROCHESTER NY COMPANY HAS REACHED TO THE OUTSIDE FOR SENIOR MANAGEMENT IN LIGHT OF SLOWER PHOTOGRAPHIC GROWTH KODAK SAID IT HOPES TO INCREASE CASH FLOW BY REDUCING RESEARCH AND DEVELOPMENT SPENDING BY RESTRUCTURING OVERSEAS OPERATIONS AND BY DISMISSING 2000 WORKERS YESTERDAY NEARLY ALL FROM ROCHESTER A MOVE THAT HAD BEEN EXPECTED THAT SHOULD DELIVER ABOUT 240 MILLION IN AFTERTAX SAVINGS IN THE NEXT TWO YEARS ABOUT HALF OF WHICH WOULD HIT THE BOTTOM LINE THIS YEAR KODAK TOLD ANALYSTS IN NEW YORK YESTERDAY THE TARGETED OVERSEAS OPERATIONS INCLUDE THOSE IN GERMANY WHERE KODAK MAKES COPIERS AND IN MEXICO WHERE FOUR KODAK PLANTS MAKE FILM 110MM CAMERAS PHARMACEUTICALS AND REFURBISH COPIERS KODAK DIDN'T SAY EXACTLY HOW MUCH IT WILL CUT OUT OF ITS R&D BUDGET WHICH AMOUNTED TO 15 BILLION FOR THE ENTIRE COMPANY IN 1991 THE LATEST YEAR FOR WHICH FIGURES WERE REPORTED BUT NOW THAT IT HAS ADMITTED TO A SLOW GROWTH RATE IN ITS CORE BUSINESS IT WILL BE DIFFICULT FOR KODAK TO JUSTIFY THOSE HEFTY COSTS ANALYSTS EXPECT ANOTHER ROUND OF R&D CUTS INCLUDING POSSIBLE LAYOFFS ALTHOUGH KODAK HAS FAILED TO DELIVER PROMISED SAVINGS FROM PAST RESTRUCTURINGS THE SAVINGS PROMISED YESTERDAY SHOULD STICK BECAUSE THIS IS THE FIRST TIME KODAK HAS COUPLED SUCH A SHAKEUP WITH A SLOWGROWTH STRATEGY ANALYSTS SAID THIS IS A BUSINESS STRATEGY THAT REALLY FITS REALITY PAINEWEBBER INC ANALYST KIMBERLY RETRIEVI SAID 9301200092 930120 BUSINESS BRIEF HUNTER ENVIRONMENTAL SERVICES INC CONCERN AND OFFICIALS NAMED IN TWO STOCKRELATED SUITS HUNTER ENVIRONMENTAL SERVICES INC SAID TWO LAWSUITS WERE FILED IN US DISTRICT COURT IN CONNECTICUT AGAINST HUNTER AND TWO OFFICERS ALLEGING SECURITIES VIOLATIONS THE SOUTHPORT CONN COMPANY SAID THE SUITS SEEK TO REPRESENT INVESTORS WHO BOUGHT HUNTER COMMON STOCK DURING THE PERIOD FROM NOV 23 1992 TO JAN 7 1993 DETAILS WERE NOT IMMEDIATELY DISCLOSED AND THE OFFICERS WEREN'T NAMED THE COMPANY DIDN'T RETURN PHONE CALLS THE SUITS FOLLOW DISCLOSURES THAT FOUR HUNTER OFFICIALS SOLD ABOUT 900000 OF STOCK THE MONTH BEFORE THE PRICE PLUMMETED 82 WHEN HUNTER WAS DENIED A STATE PERMIT TO BUILD AN UNDERGROUND HAZARDOUSWASTE DUMP AT THE TIME AN OFFICIAL SAID HE AND THE THREE OTHER EXECUTIVES ACTED WITHOUT HAVING ANY INSIDER INFORMATION THE NATIONAL ASSOCIATION OF SECURITIES DEALERS IS CONDUCTING A ROUTINE REVIEW OF THE TRADING OF THE COMMON STOCK SAID HUNTER 9301200091 930120 LEISURE & ARTS THE MOBILE GUIDE FROM OFFICIAL YOYOS TO TIPPER'S PHOTOS BY AMY GAMERMAN WASHINGTON DC RIGHT THERE IN THE MIDDLE OF THE PREINAUGURAL MADNESS CALLED AMERICA'S REUNION ON THE MALL I SAW BILL CLINTON DRESSED IN AN ARKANSAS RAZORBACKS SWEATSHIRT AND BASEBALL CAP HE WAS POSING FOR PICTURES AND SHIVERING SLIGHTLY IN THE CHILL AIR IN THE LAST MONTH I'VE DONE FIVE COMMERCIALS SAID THE PRESIDENTELECT WHO ON CLOSER INSPECTION TURNED OUT TO BE JEFF MARRIOTT OF SANTA BARBARA CALIF WHO BOASTS BOTH A CLINTONESQUE SHOCK OF GRAY HAIR AND A CLINTONESQUE PAUNCH MY AGENT'S GOT A BATTLE GOING BETWEEN ARSENIO AND LENO MY OFFICIAL INAUGURAL WEEK KICKED OFF WHEN I CHECKED INTO MY HOTEL AND WAS HANDED THE 52ND PRESIDENTIAL INAUGURAL COMMEMORATIVES BROCHURE WHICH TELLS YOU HOW TO ORDER AN OFFICIAL YOYO WITH INAUGURAL SEAL 6 OR A SET OF OFFICIAL INAUGURAL LICENSE PLATES 50 AND EVEN HAVE THEM DELIVERED TO YOUR HOTEL ROOM IT CONTINUED ON THE MALL WHERE THE CROWDS WERE ENOUGH TO COW EVEN A VETERAN OF THE NEW YORK SUBWAY AT RUSH HOUR I DIDN'T EVEN BOTHER TRYING TO FIGHT MY WAY INTO THE PACKED TENT WHERE LINDA RONSTADT WAS SINGING WITH A MARIACHI ORCHESTRA FROM LOS ANGELES OR THE ONE IN WHICH A WELLAMPLIFIED CAROL CHANNING COULD BE HEARD FROM OUTSIDE WARBLING I'M JUST A LITTLE GIRL FROM LITTLE ROCK THE FAMILY PLAYGROUND TENT MEANWHILE HAD SUCCUMBED TO MOB RULE DOWN IN FRONT DOWN IN FRONT CHANTED THE CROWD DROWNING OUT THE SPOKESMAN FOR THE DC METROPOLITAN POLICE BOYS & GIRLS CLUBS DOUBLEDUTCH JUMPROPING TEAMS FRANKLY I BLAME HILLARY IT WAS MRS CLINTON'S IDEA TO GET US ALL TOGETHER FROM DIFFERENT COMMUNITIES TO CELEBRATE AND ENJOY OURSELVES AND TO SHARE SAID THE FAMILY PLAYGROUND'S EMCEE IN BETWEEN COMMANDS TO CLEAR THE AISLES IT WAS ALSO HER IDEA TO HAVE A TRADITIONAL ARTS WORKSHOP WHERE PEOPLE LIKE EPPIE ARCHULETA A SPINNER FROM ALAMOSA COLO COULD DEMONSTRATE HER CRAFT AS PEOPLE JOSTLED FOR A BETTER POSITION A FEW INCHES FROM HER SPINNING WHEEL SHE JUST IGNORED THEM I DECIDED TO DO THE SAME AND HEADED OUTSIDE WHERE MORE CRAFTSPEOPLE WERE HAWKING UNOFFICIAL COMMEMORATIVES SUCH AS CRYSTAL EARRINGS AND MARIJUANA LEAFEMBOSSED BASEBALL CAPS IN ONE OF THE THREE FOOD TENTS WHERE EVERYTHING FROM CURRIED GOAT TO BLINIS TOPPED WITH ARKANSAS CAVIAR PONDGROWN STURGEON ROE WAS ON OFFER I STOOD IN LINE FOR 20 MINUTES TO PAY 350 FOR A DEMITASSE OF CHILI RESTORED I HEADED TO A SMITHSONIAN INSTITUTION AUDITORIUM TO SEE CHICAGO'S POPOVICH BROTHERS MIRACULOUSLY IT WAS NEARLY EMPTY WE PLAY SERBOCROATIAN FOLK MUSIC A POPOVICH BROTHER EXPLAINED PERHAPS THEY WERE VICTIMS OF A BOSNIAN MUSLIMINSPIRED BOYCOTT ONE PERSON'S POLITICAL CORRECTNESS IS ANOTHER'S OUTRAGE AT THE LINCOLN MEMORIAL SUNDAY NIGHT ARETHA FRANKLIN WORE A NONFAKE FUR COAT AND THE CROWD CHEERED ANYWAY THE HOME BOX OFFICE CAMERAS ROLLED FOR HER AND THEN FOR SOUL SIBLINGS OPRAH WINFREY DIANA ROSS MICHAEL JACKSON AND RAPPER LL COOL J WHO CHANTED A SPECIAL TOAST TO THE FIRST COUPLE ELECT TIME TO PARTY WITH BIG BILL AND HILLARY MY MAN BILLY WON'T SLIP GRECIAN FORMULA 44 TRIP THEN THERE WAS WHOOPI GOLDBERG WHO FILLED THE DEAD AIR DURING A TECHNICAL DELAY BY DISPENSING WITH THE NEED FOR THAT QUAINT CUSTOM KNOWN AS THE SWEARINGIN ARE YOU BLOWN AWAY SHE SHOUTED AT THE PRESIDENTELECT YOU ARE NOW THE PRESIDENT OF THE UNITED STATES BACK ON THE MALL THE NEXT MORNING CHELSEA CLINTON TURNED UP WITH THREE VERY YOUNG VERY BLOND FRIENDS THE ANGELIC MOPPETS SWAYED TO THE BEAT OF THE FEMALE RAP DUO SALTNPEPA PERFORMING THEIR HIT LET'S TALK ABOUT SEX THREE BALD MALE DANCERS WORKED UP A SWEAT GYRATING BEHIND THEM FROM A PROTECTED AREA BEHIND THE STAGE CHELSEA AND THE PRETEENERS CHANTED ALONG LET'S TALK ABOUT SEX BABY LET'S TALK ABOUT YOU AND ME IT WAS DEFINITELY A JOB FOR TIPPER GORE THAT MOTHER OF PREVENTION OF INDECENCY IN ROCK SHE WAS IMMOBILIZED AT THE KENNEDY CENTER WHERE AN AFTERNOON TASTE OF TENNESSEE BASH WAS BEING THROWN IN HONOR OF HER AND THE VEEPELECT THE ENTERTAINMENT COULDN'T HAVE BEEN MORE GRATED WHILE GUESTS WEARING COWBOY HATS BIG HAIR AND THE OCCASIONAL RHINESTONE TIPPER PIN MUNCHED ON MINI HAMANDBISCUIT CANAPES AND BITESIZED PECAN PIES THE KNOXVILLE CHILDREN'S SHOW CHOIR DIMPLED ITS WAY THROUGH A MEDLEY OF SHOW TUNES TO BE INVITED TO THIS FUNCTION IT HELPED TO BE A PAIDUP PATIENT OF DR GORDON PETTY OF CARTHAGE TENN THE GORE FAMILY DOCTOR WHEN THEIR KIDS GET A SORE THROAT THEY CALL ME HE EXPLAINED ADDING THAT HE'S PREPARED TO MAKE HOUSE CALLS TO THE VICE PRESIDENTIAL MANSION IF NEEDED MEANWHILE THREE OF KRISTIN GORE'S WASHINGTON PALS WERE HIDING OUT BY THE FOOD MY MOTHER MADE ME DRESS UP FOR THIS COMPLAINED 15YEAROLD MARIAN GOEBES WHO ATTENDED ELEMENTARY SCHOOL IN ARLINGTON VA WITH KRISTIN AT LAST SOMEONE WHO COULD ANSWER MY MOST PRESSING QUESTION DO THE GORE GIRLS GET ALONG WITH CHELSEA MS GOEBES SHRUGGED KRISTIN SAID SHE WAS NICE SHE OFFERED WHO KNOWS IF KRISTIN PLAYS HER CARDS RIGHT MAYBE CHELSEA WILL INVITE HER OVER TO THE WHITE HOUSE TO LISTEN TO HER SALTNPEPA DISCS UNLESS SOMEONE LEAKS TO HER TIPPER WILL NEVER KNOW AND SPEAKING OF THE VEEPESS THE NATIONAL MUSEUM OF AMERICAN ART HERE HAS PUT ON A SPECIAL INAUGURATIONWEEK SHOW OF 40 OF THE MORE THAN 3000 PICTURES THE NATION'S LEADING FORMER PHOTOJOURNALIST SNAPPED DURING THE PRESIDENTIAL CAMPAIGN YOU WON'T SEE ANY NAKED DISPLAYS OF POLITICAL DISCONTENT OR BORED SPECTATORS JUST SEAS OF BANNERWAVING SUPPORTERS GREETING THE SHIRTSLEEVED BILL AND AL LIKE THE PHOTOS THEMSELVES TIPPER'S CAPTIONS ARE ABOUT AS REVEALING AS THE INSIDE OF A CLINTONGORE CAMPAIGN LEAFLET AL AND I JOINED BILL AND HILLARY IN A PRESENTATION OF FAMILY VALUES AT THE CHAUTAUQUA INSTITUTE STILL SOME OF THE IMAGES SUGGEST THAT TIPPER MAY BE HIDING A SLY SENSE OF HUMOR ONE SHOWS HER HUSBAND GIVING A SPEECH IN FRONT OF ANOTHER PURVEYOR OF HOT AIR A BALLOON STORE IDENTIFIED BY THE SIGN INCREDIBLE INFLATABLES AND THEN THERE ARE THOSE TANTALIZING BEHINDTHESCENES GLIMPSES OF THE CAMPAIGN LIKE THE ONE OF TIPPER'S TWO ASSISTANTS HER BROTHERINLAW AND HER DAUGHTER KARENNA TRYING TO READ A 60PAGE BRIEFING THAT ARRIVED BY FAX WITH NO PAPER CUTTER A SENSE OF HUMOR AND THE ABILITY TO IMPROVISE HELPED A LOT TIPPER WRITES ANYONE ATTENDING THE 52ND PRESIDENTIAL INAUGURAL KNEW EXACTLY WHAT SHE MEANT 9301200090 930120 POLITICS & POLICY EPA SETS RULES SOME INDEPENDENT OF WHITE HOUSE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY SPENT THE FINAL HOURS OF THE BUSH ADMINISTRATION WORKING TO COMPLETE A STRING OF REGULATORY DECISIONS ALTHOUGH 11THHOUR REGULATION IS NOT UNUSUAL WHEN THE PRESIDENCY PASSES FROM ONE POLITICAL PARTY TO ANOTHER IN THIS CASE THE EPA LARGELY SEEMED BENT NOT ON HEADING OFF ACTIONS TO COME FROM DEMOCRATS BUT ON DECLARING FINAL VICTORY OVER OPPOSING FORCES AT THE BUSH WHITE HOUSE ON A NUMBER OF FRONTS IN ITS MOST SIGNIFICANT MOVE THE AGENCY REJECTED WHITE HOUSE EFFORTS TO WATER DOWN THE BEST AVAILABLE CONTROL TECHNOLOGY PROCESS BY WHICH FACTORIES THAT LOCATE IN PRISTINE AREAS SUCH AS THE EDGE OF NATIONAL PARKS ARE REQUIRED TO CONSIDER THE MOST STRINGENT POLLUTIONCONTROL METHODS AVAILABLE AND TO ADOPT THEM IF POSSIBLE THE WHITE HOUSE COMPETITIVENESS COUNCIL AND WHITE HOUSE COUNSEL BOYDEN GRAY HAVE FOR YEARS SOUGHT A MORE LENIENT RULE THAT WOULD ALLOW SUCH PLANTS GREATER FLEXIBILITY IN A MEMO TO WILLIAM ROSENBERG HEAD OF EPA'S CLEAN AIR PROGRAM DEPARTING EPA ADMINISTRATOR WILLIAM REILLY DECLARED THE CURRENT TOPDOWN BACT POLICY IS WORKING REASONABLY WELL AND DOES NOT WARRANT IMMEDIATE ACTION RATHER THAN CHANGE THE POLICY MR REILLY SUGGESTED CALLING A FORMAL REGULATORY NEGOTIATION AMONG ALL PARTIES EFFECTIVELY PREVENTING ACTION ON THE MATTER BY THE BUSH ADMINISTRATION SEPARATELY THE EPA CALLED FOR A COMPLETE BAN ON METHYL BROMIDE A WIDELY USED PESTICIDE BY THE YEAR 2000 UNDER THE CLEAN AIR ACT AMENDMENTS OF 1990 ANY CHEMICAL SHOWN TO PRESENT MORE THAN A CERTAIN LEVEL OF DANGER TO THE OZONE LAYER MUST BE BANNED BUT THE WHITE HOUSE BUDGET OFFICE AND THE AGRICULTURE DEPARTMENT HAD PRESSED THE EPA TO BE LENIENT IN THE CASE OF METHYL BROMIDE A SOIL FUMIGANT USED EXTENSIVELY IN AGRICULTURE THE METHYL BROMIDE ACTION EXCEEDS THE REQUIREMENTS OF THE MONTREAL PROTOCOL AN INTERNATIONAL AGREEMENT THAT MERELY REQUIRES A FREEZE IN THE PRODUCTION AND CONSUMPTION OF THE PESTICIDE THE EPA SAID THAT BETWEEN NOW AND THE YEAR 2000 IT WOULD FREEZE PRODUCTION AND IMPORTS OF METHYL BROMIDE AT 1994 LEVELS THE AGENCY ALSO DECLARED THAT IT WOULD BAN ANOTHER CLASS OF OZONEDEPLETING CHEMICAL HYDROBROMOFLUOROCARBONS BY JAN 1 1996 HYDROBROMOFLUOROCARBONS ARE SUBSTANCES FOUND MOST OFTEN IN FIRESUPPRESSION SYSTEMS DAVID DONIGER A SENIOR ATTORNEY FOR THE NATURAL RESOURCES DEFENSE COUNCIL SAID THE EPA'S METHYL BROMIDE ACTION WAS WELCOME AND SHOULD BEGIN TO SEND A SIGNAL TO THAT INDUSTRY LIKE THE OTHERS BEFORE IT THAT THE SMART THING TO DO IS WORK HARD ON ALTERNATIVES THE EPA ALSO PROPOSED NEW REGULATIONS AIMED AT REDUCING OCEAN CONTAMINATION FROM OFFSHORE OIL FACILITIES THE REGULATIONS WOULD ESTABLISH LIMITATIONS ON WASTEWATER DISCHARGES FROM OFFSHORE RIGS REQUIRING THE USE OF THE BEST AVAILABLE TECHNOLOGY THAT IS ECONOMICALLY FEASIBLE THE AGENCY PREDICTED THE ACTION WOULD PREVENT 264 MILLION POUNDS OF POLLUTANTS FROM BEING DISCHARGED INTO OCEAN WATERS EACH YEAR THE PROPOSED REGULATIONS WILL BE SUBJECT TO ALTERATION BY THE CLINTON ADMINISTRATION 9301200089 930120 CBOE INTRODUCES AN INDEX TO TRACK STOCKS' VOLATILITY BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OPTIONS EXCHANGE INTRODUCED AN INDEX TO TRACK VOLATILITY IN THE STOCK MARKET AND SAID IT HOPES TO UNVEIL OPTIONS CONTRACTS BASED ON MARKET VOLATILITY WITHIN A FEW MONTHS CBOE'S NEW INDEX COMES AT A TIME WHEN WALL STREET FIRMS ARE TRYING TO DEVISE WAYS TO TRACK AND CONTROL THE PREVIOUSLY UNPREDICTABLE FORCES THAT GOVERN MARKET VOLATILITY WHICH SOARS AT TIMES OF CALAMITIES SUCH AS WAR OR CATASTROPHIC ECONOMIC EVENTS THIS IS AN ENTIRELY NEW IDEA THAT HAS TREMENDOUS PRACTICAL USEFULNESS SAYS ROBERT WHALEY A FINANCE PROFESSOR AT DUKE UNIVERSITY'S FUQUA SCHOOL OF BUSINESS WHO DEVELOPED THE CBOE INDEX PEOPLE WILL HAVE DIFFICULTY UNDERSTANDING IT AT FIRST BUT I THINK THEY WILL COME TO REALIZE IT'S IMPORTANT AND EVENTUALLY IT WILL INFLUENCE THEM IN THEIR DAYTODAY INVESTMENT SCHEMES THE CBOE INDEX IS BASED ON A MATHEMATICAL FORMULA THAT ANALYZES VOLATILITY IN PRICES OF OPTIONS CONTRACTS BASED ON THE STANDARD & POOR'S INDEX OF 100 LEADING STOCKS THE FORMULA IS APPLIED TO EIGHT S&P 100 OPTIONS WITH DIFFERENT STRIKE PRICES AND EXPIRATION DATES IT YIELDS A NUMBER THAT ESTIMATES VOLATILITY OVER THE NEXT 30 DAYS MR WHALEY SAYS THE INDEX COULD BE USEFUL TO BOTH INDIVIDUAL INVESTORS AND INSTITUTIONS SUCH AS PENSION FUNDS SAYS JOSEPH LEVIN VICE PRESIDENT OF RESEARCH AND PRODUCT DEVELOPMENT AT CBOE AN INDIVIDUAL WITH HALF HIS MONEY IN STOCKS AND HALF IN SAVINGS COULD MONITOR THE VOLATILITY INDEX IF VOLATILITY IS EXPECTED TO INCREASE AND THE INVESTOR WANTED TO LOCK IN EARLIER GAINS HE COULD MOVE SOME OR ALL OF THE MONEY IN STOCKS TO SAVINGS A PENSION FUND THAT HAS WRITTEN COVERED CALL STOCKINDEX OPTIONS A STRATEGY TANTAMOUNT TO OFFERING TO SELL STOCKS FOR A PRESPECIFIED PRICE ON A GIVEN EXPIRATION DATE RISKS BIG LOSSES IF VOLATILITY SURGES JUST BEFORE THE EXPIRATION DATE ARRIVES SUCH A FUND COULD OFFSET ITS RISK OF LOSSES BY HEDGING WITH VOLATILITY OPTIONS CONTRACTS MR WHALEY SAYS TO SOME TRADERS THIS MIGHT SEEM AN ODD TIME TO INTRODUCE AN INDEX MEASURING VOLATILITY IN THE PAST FEW MONTHS STOCK MARKET VOLATILITY HAS BEEN UNCHARACTERISTICALLY LOW YET MR WHALEY SAYS A TIME OF LOW VOLATILITY IS IDEAL TO INTRODUCE A VOLATILITYMEASURING INDEX VOLATILITY OPTIONS CONTRACTS WHEN THEY ARE INTRODUCED WILL BE USEFUL AS HEDGES AGAINST LOSSES RESULTING FROM CATASTROPHIC EVENTS CBOE EXECUTIVES COMPARE SUCH HEDGES TO FIRE INSURANCE IT'S BEST TO ACQUIRE THE INSURANCE DURING QUIET TIMES RATHER THAN WHEN THE HOUSE IS ON FIRE THOUGH FIRMS SUCH AS MORGAN STANLEY & CO HAVE EXPERIMENTED WITH MEASURING MARKET VOLATILITY CBOE IS THE FIRST FINANCIAL EXCHANGE TO INTRODUCE AN INDEX PURPORTING TO TRACK IT RELIABLY MR WHALEY SAYS THE MATH HE USED IN THE STOCK MARKET VOLATILITY INDEX COULD ALSO BE APPLIED TO AN INDEX THAT TRACKS VOLATILITY IN OTHER FINANCIAL MARKETS CURRENCIES OR INTEREST RATES FOR EXAMPLE 9301200088 930120 INTERNATIONAL BANQUE DE FRANCE MAY GET INDEPENDENCE POLITICAL CONSENSUS FORMS TO END STATE CONTROL BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS THE FRENCH CENTRAL BANK FOUNDED IN 1800 BY NAPOLEON HAS BEEN TAKING ITS MARCHING ORDERS FROM THE GOVERNMENT FOR TWO CENTURIES BUT A POLITICAL CONSENSUS SUPPORTED BY THE BANQUE DE FRANCE'S GOVERNOR JACQUES DE LAROSIERE HAS EMERGED IN FAVOR OF CUTTING THE BANK LOOSE FROM THE GOVERNMENT A STRIKING DEVELOPMENT IN A NATION LONG OBSESSED WITH CENTRALIZATION AND CONTROL ONE OF FRANCE'S TWO LEADING CONSERVATIVE OPPOSITION PARTIES THIS MONTH PRESENTED A DRAFT LAW STIPULATING THAT THE CENTRAL BANK MAY NEITHER SOLICIT NOR ACCEPT INSTRUCTIONS FROM THE GOVERNMENT OR FROM AN AUTHORITY EMANATING FROM IT EDOUARD BALLADUR A SENIOR MEMBER OF THE OTHER OPPOSITION PARTY WHO COULD BECOME FRANCE'S NEXT PRIME MINISTER AFTER ELECTIONS IN MARCH SAYS HE WANTS THE BANK TO BE INDEPENDENT BY JULY EVEN THE CURRENT SOCIALIST GOVERNMENT SAYS INDEPENDENCE WILL HAPPEN IN 1993 SEVERAL COMPLEX ISSUES NEED TO BE RESOLVED BEFORE THE BANK BECOMES NOMINALLY INDEPENDENT EVEN THEN SOME ARE SKEPTICAL THAT BANQUE DE FRANCE WILL EVER BE AS FREE OF POLITICAL INTERFERENCE AS THE GERMAN CENTRAL BANK THE BUNDESBANK WHOSE TOUGH DECISIONS HAVE BROUGHT DOWN AT LEAST ONE GOVERNMENT STILL THE CURRENT TALK IN PARIS IS MUSIC TO THE EARS OF MR DE LAROSIERE63 YEARS OLD WHO SERVED AS MANAGING DIRECTOR OF THE INTERNATIONAL MONETARY FUND BEFORE TAKING HIS JOB AT THE BANQUE DE FRANCE IN JANUARY 1987 HE WANTS THE BANK'S STATUTES CHANGED AS SOON AS POSSIBLE SAYING IN AN INTERVIEW THAT THIS WOULD FURTHER REINFORCE THE CREDIBILITY AND THE CONTINUITY OF FRENCH MONETARY POLICY EVENTS OF THE PAST FEW WEEKS HELP EXPLAIN WHY THE PARIS POLITICAL ESTABLISHMENT IS IN SUCH A RUSH THE FRENCH FRANC HAS TAKEN SOME HEAVY BATTERING IN CURRENCY MARKETS SINCE SEPTEMBER MOST RECENTLY AT THE BEGINNING OF JANUARY FORCING THE BANQUE DE FRANCE TO SPEND MORE THAN 300 BILLION FRANCS 55 BILLION IN INTERVENTION OVER THE PERIOD BECAUSE THE FRANC WITHSTOOD THE PRESSURES HELPED BY THE BUNDESBANK AND HIGHER FRENCH INTEREST RATES MOST OF THAT MONEY HAS BEEN RECOUPED THE BANK HAS EVEN MADE A PROFIT ESTIMATED AT JUST UNDER FIVE BILLION FRANCS ON THE CURRENCY TRANSACTIONS MR DE LAROSIERE BELIEVES THE ATTACKS ON THE FRANC ARE OVER BUT SOME OF THE TALK ABOUT CENTRAL BANK INDEPENDENCE IS AIMED AT SHORING UP THE FRANC AGAINST NEW PRESSURE PARTICULARLY IN THE ELECTION CAMPAIGN AHEAD SAY GOVERNMENT OFFICIALS AND OUTSIDE ANALYSTS INDEPENDENCE FOR THE CENTRAL BANK THEY SAY WOULD UNDERSCORE FRANCE'S COMMITMENT TO A STRONG FRANC REGARDLESS OF WHO IS IN POWER FINANCIAL MARKETS WOULD VIEW IT FAVORABLY SAYS RICHARD DAVIDSON EUROPEAN MARKET STRATEGIST AT MORGAN STANLEY IN LONDON WHO SAYS THE CURRENT DEBATE ALREADY HAS HELPED THE FRANC SOMEWHAT THERE ARE OTHER LESS OPPORTUNISTIC REASONS TOO UNDER THE EUROPEAN COMMUNITY'S MAASTRICHT TREATY WHICH LAYS DOWN THE STEPS TOWARD EUROPEAN MONETARY UNION AT THE END OF THE CENTURY CENTRAL BANKS IN ALL 12 EC NATIONS ARE SUPPOSED TO BECOME INDEPENDENT OF GOVERNMENT CONTROL FRANCE WHICH NARROWLY VOTED IN A SEPTEMBER REFERENDUM TO RATIFY MAASTRICHT WOULD HAVE BEEN REQUIRED TO TAKE ACTION OVER THE NEXT FEW YEARS ANYWAY BUT MR DE LAROSIERE BELIEVES THERE IS MORE TO THE ISSUE THAN POLITICAL AND FINANCIAL NECESSITY I THINK THERE IS A CULTURAL EVOLUTION UNDER WAY IN FRANCE HE SAYS SITTING BACK ON A SILKCOVERED ANTIQUE SOFA IN HIS ORNATE OFFICE MY COMPATRIOTS ARE MORE AND MORE ATTACHED TO THE STABILITY OF THE FRANC THEY SEE IT AS A SORT OF NATIONAL VALUE AND ARE PROUD OF IT FOR MANY YEARS THE FRENCH LIVED WITH INFLATION OVER THE PAST DECADE THEY HAVE SEEN A CURRENCY THAT IS MORE AND MORE STABLE AND ONE OF THE BEST CURRENCIES IN THE WORLD IN TERMS OF ITS CAPACITY TO CONSERVE ITS PURCHASING POWER HE CONTINUES THE IDEA OF GRANTING SUFFICIENT INDEPENDENCE TO THE INSTITUTION THAT IS CHARGED WITH MANAGING THE CURRENCY IS AN IDEA THAT IS NO LONGER CONTESTED BY PUBLIC OPINION BUT OTHER ISSUES ARE CONTESTED PARTICULARLY THE GOVERNMENT'S FRANC FORT OR STRONG FRANC POLICY A SMALL BUT NOISY GROUP OF CONSERVATIVE POLITICIANS LED BY TWO ANTIMAASTRICHT REBELS CHARLES PASQUA AND PHILIPPE SEGUIN WANT FRANCE TO ALLOW THE FRANC TO FLOAT OR BE DEVALUED TO BOOST EMPLOYMENT AND GROWTH STILL MR PASQUA SUPPORTS AN INDEPENDENT CENTRAL BANK HE ACTUALLY PROPOSED LEGISLATION ON IT A FEW YEARS AGO MR DE LAROSIERE DISMISSES ANY TALK OF DEVALUATION AND MAKES A STRONG CASE FOR THE GOVERNMENT'S ANTIINFLATIONARY STANCE LONGTERM FRENCH INTEREST RATES ARE AT THEIR LOWEST LEVEL SINCE 1986 HE NOTES MEANWHILE INFLATION IS 17 PERCENTAGE POINTS LOWER THAN IN GERMANY COMPARED WITH EIGHT POINTS HIGHER IN 1980 BEFORE FRANCE ADOPTED ITS STRINGENT POLICY ONLY A STRONG CURRENCY ENABLES YOU TO BUILD A STRONG ECONOMY IN THE MEDIUM AND LONG TERM MR DE LAROSIERE SAYS AND HE REPLIES WITH A SNORT WHEN ASKED IF AN INDEPENDENT CENTRAL BANK WOULD BEHAVE ANY DIFFERENTLY FROM THE WAY IT DOES NOW DO YOU HONESTLY THINK THAT IF I WERE INDEPENDENT I WOULD CARRY OUT A POLICY OF MONETARY LAXISM HE ASKS IT REMAINS TO BE SEEN HOW INDEPENDENT THE BANK CAN BE IN PRACTICE MR DE LAROSIERE SAYS THE NECESSARY TECHNICAL CHANGES ARE FAIRLY SIMPLE AN AMENDMENT TO THE BANK'S STATUTES TO EXCLUDE GOVERNMENT INTERFERENCE AND DETAILS ABOUT TERMS OF OFFICE FOR THE BANK'S TOP PEOPLE OTHERS SAY THE ISSUE IS MORE COMPLEX THAN IT SOUNDS EXTRICATING THE BANK FROM THE FRENCH TREASURY WITH WHICH IT HAS WORKED CLOSELY FOR DECADES OFTEN AS THE JUNIOR PARTNER COULD BE TRICKY AND MANY TECHNICAL QUESTIONS HAVE TO BE ANSWERED FOR EXAMPLE SHOULD AN INDEPENDENT CENTRAL BANK CONTINUE TO REGULATE THE NATION'S COMMERCIAL BANKING SYSTEM OR SHOULD THIS BE HIVED OFF TO A DIFFERENT AGENCY AS IN GERMANY INDEPENDENCE COULD BE HARD TO PUT INTO PRACTICE SAYS MICHELE DEBONNEUIL HEAD OF THE ECONOMIC RESEARCH DEPARTMENT AT BANQUE INDOSUEZ IN PARIS HARDEST OF ALL IS GAUGING WHETHER THE FRENCH ESTABLISHMENT IS REALLY WILLING TO RELINQUISH COMPLETE CONTROL OF MONETARY POLICY OR WHETHER IT WOULD BE TEMPTED TO THROW ITS WEIGHT AROUND IN TIMES OF CRISIS GERMAN MONETARY OFFICIALS IN PARTICULAR ARE WATCHING THE FRENCH DEBATE WITH SOME SKEPTICISM THE BUNDESBANK THREW A FIT LAST YEAR WHEN FRENCH PRESIDENT FRANCOIS MITTERRAND SUGGESTED PUBLICLY THAT THE PLANNED NEW EUROPEAN CENTRAL BANK SHOULD TAKE ORDERS FROM EUROPEAN COMMUNITY GOVERNMENTS EVEN THOUGH THE MAASTRICHT TREATY EXCLUDES THIS IF THERE IS NO PRESSURE ON THE FRANC IN APRIL WILL THE FRENCH INDEPENDENCE PLANS JUST BE QUIETLY PUT ON THE BACK BURNER WONDERS ONE SENIOR GERMAN OFFICIAL BUT IN AT LEAST ONE CONCRETE WAY MR DE LAROSIERE ALREADY PROVIDES LIVING PROOF THAT TIMES REALLY ARE CHANGING GOVERNORS OF THE BANQUE DE FRANCE HAVE TRADITIONALLY BEEN APPOINTED AND DISMISSED AT THE GOVERNMENT'S WHIM BUT WHEN MR DE LAROSIERE WAS REAPPOINTED FOR A SECOND TERM LAST YEAR HE WAS GIVEN A FIXED FIVEYEAR CONTRACT APPARENTLY THE FIRST TIME ANY RECENT GOVERNOR HAS BEEN TREATED WITH SUCH DEFERENCE BY THE GOVERNMENT 9301200087 930120 PNC FINANCIAL GAINS PIECE OF MUTUAL FUND BUSINESS PITTSBURGH PNC FINANCIAL CORP TOOK A PIECE OF MUTUAL FUND BUSINESS FROM BOSTON CO WHICH IS BEING ACQUIRED BY PNC'S RIVAL MELLON BANK CORP PNC LOST TO MELLON IN BIDDING LAST SEPTEMBER ON BOSTON CO A UNIT OF AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS HOLDINGS MELLON ALSO IN PITTSBURGH IS PAYING 145 BILLION IN STOCK AND CASH FOR BOSTON CO AFTER LOSING THE BID PNC INFORMED THE BOARDS OF THE FUNDS THAT IT WOULD DISCONTINUE A LONGSTANDING RELATIONSHIP WITH BOSTON CO BECAUSE OF THE MELLON ACQUISITION PEOPLE CLOSE TO THE BANKS SAID UNDER THE PREVIOUS ARRANGEMENT WITH BOSTON CO PNC MANAGED FUNDS BOSTON CO ADMINISTERED THEM AND SHEARSON LEHMAN DISTRIBUTED THEM THE BOARDS OF THE FUNDS CHOSE TO CONTINUE THEIR RELATIONSHIP WITH PNC AND TO SEVER TIES WITH BOSTON CO THESE PEOPLE SAID PNC SUBSEQUENTLY RETAINED PENNSYLVANIA MERCHANTS GROUP LTD TO HANDLE DISTRIBUTION PNC WILL MANAGE AND ADMINISTER THE FUNDS PNC SAID THE 20 FUNDS IN QUESTION HAVE ASSETS OF MORE THAN 20 BILLION INCREASING THE VALUE OF MUTUAL FUNDS UNDER PNC ADMINISTRATION TO 50 BILLION FROM 30 BILLION 9301200086 930120 NASD SET TO EXPAND DATA ON ACTION AGAINST BROKERS NEW YORK IT MAY GET EASIER THIS YEAR TO FIND OUT A LITTLE MORE ABOUT YOUR BROKER'S PAST THE BOARD OF THE NATIONAL ASSOCIATION OF SECURITIES DEALERS SAID IT APPROVED A MEASURE TO EXPAND THE INFORMATION IT PROVIDES THE PUBLIC ABOUT DISCIPLINARY ACTION AGAINST BROKERS AND SECURITIES FIRMS THE NASD PROPOSAL IS AWAITING APPROVAL BY THE SECURITIES AND EXCHANGE COMMISSION IT COULD TAKE EFFECT IN LATE SPRING OR EARLY SUMMER CURRENTLY INVESTORS CAN RECEIVE INFORMATION ABOUT DISCIPLINARY ACTION AGAINST BROKERS AND BROKERAGE FIRMS THROUGH A TOLLFREE NUMBER OPERATED BY THE NASD THE ADDITIONAL INFORMATION THAT NOW WILL BE AVAILABLE THROUGH THE TOLLFREE NUMBER INCLUDES CIVIL JUDGMENTS ARBITRATION DECISIONS AND CRIMINAL INDICTMENTS AN NASD OFFICIAL SAYS THE EXPANDEDINFORMATION PROVISION WILL COVER ONLY THOSE PENDING CASES WHERE AN INVESTIGATION OF THE COMPLAINT HAS ALREADY BEEN COMPLETED THIS PROCESS OFTEN TAKES A FEW MONTHS THE NASD SAYS BUT SOME CASES CAN TAKE YEARS SO A BROKER COULD HAVE COMPLAINTS OUTSTANDING THAT WOULDN'T BE DISCLOSED IN ADDITION TO ITS OWN DISCIPLINARY ACTIONS THE NASD PROVIDES INFORMATION ON ACTIONS TAKEN BY THE SEC THE NEW YORK STOCK EXCHANGE THE AMERICAN STOCK EXCHANGE THE CHICAGO BOARD OPTIONS EXCHANGE AND SEVERAL OTHER BODIES INVESTORS MAY CALL 8002899999 TO RECEIVE INFORMATION ON THEIR BROKER 9301200085 930120 WHO'S NEWS MERCK & CO MERCK & CO RAHWAY NJ CECIL B PICKETT ICHIRO SHINKAI AND MERVYN J TURNER WERE NAMED SENIOR VICE PRESIDENTS AT MERCK RESEARCH LABORATORIES A UNIT OF THIS PHARMACEUTICAL AND HEALTH CARE PRODUCTS COMPANY DR PICKETT 47 YEARS OLD WHO WILL HEAD BASIC RESEARCH IN MERCK'S FACILITY IN WESTMOUNT QUEBEC HAD BEEN EXECUTIVE DIRECTOR OF RESEARCH AT THE MERCK FROSST CENTRE FOR THERAPEUTIC RESEARCH IN MONTREAL DR SHINKAI 51 HAD BEEN VICE PRESIDENT OF PROCESS RESEARCH AND DEVELOPMENT DR TURNER 46 WHO WILL HEAD BASIC RESEARCH IN THE WESTFIELD NJ FACILITY HAD BEEN VICE PRESIDENT OF ANIMAL HEALTH AND AGRICULTURAL RESEARCH AND DEVELOPMENT 9301200084 930120 BUSINESS BRIEF CHRYSLER CORP DODGE DAYTONA PRODUCTION TO BE HALTED NEXT MONTH CHRYSLER CORP HIGHLAND PARK MICH SAID IT WILL STOP PRODUCTION OF ITS DODGE DAYTONA AT ITS STERLING HEIGHTS PLANT LATE NEXT MONTH INSTEAD A LARGER VERSION OF THE DAYTONA WILL BE ASSEMBLED BY MITSUBISHI MOTORS CORP AT ITS DIAMONDSTAR MOTORS PLANT IN BLOOMINGTON ILL CHRYLSER OWNS A SMALL STAKE IN MITSUBISHI OF JAPAN AND THE TWO COMPANIES HAVE JOINT PRODUCT DISTRIBUTION AGREEMENTS THE STERLING HEIGHTS PLANT ALSO BUILDS THE DODGE SHADOW AND PLYMOUTH SUNDANCE AND IT IS SCHEDULED TO BEGIN PRODUCTION NEXT YEAR ON THEIR REPLACEMENT CHRYSLER'S NEW SMALL CAR CODENAMED THE JA 9301200083 930120 NEW YORK CITY DEBT MUST BE HANDLED WITH SPECIAL CARE UNDERWRITING HOPEFULS PROVE SENSITIVITY TO SOCIAL ISSUES CHARITY BEGINS WITH BONDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IT TAKES MORE THAN BUSINESS SAVVY TO UNDERWRITE NEW YORK CITY BONDS A QUESTIONNAIRE NEW YORK SENT TO WALL STREET SECURITIES FIRMS HOPING TO UNDERWRITE THE HUGE BOND SALES MADE THE USUAL INQUIRIES ABOUT MARKETING EXPERIENCE AND COMMITMENT TO THE CITY THEN CAME WHAT HAS BEEN CALLED THE SOCIAL QUESTION SINCE JUNE OF 1990 IT SAYS THE WORLD HAS WITNESSED A PROGRAM OF ETHNIC CLEANSING' IN THE FORMER YUGOSLAVIA A RISE IN NEONAZISM AND XENOPHOBIA IN GERMANY AND THE PASSAGE OF LAWS DISCRIMINATING AGAINST HOMOSEXUALS IN COLORADO THEREFORE NEW YORK CITY WOULD LIKE TO KNOW WHAT WOULDBE UNDERWRITERS HAVE BEEN DOING TO COMBAT DISCRIMINATION AND BIGOTRY ANYWHERE IN THE WORLD IN THE PAST THE CITY HAS ASKED INTERESTED UNDERWRITERS ABOUT HIRING PRACTICES AFFIRMATIVE ACTION PROGRAMS AND INVESTMENTS IN SOUTH AFRICA POINTS OUT CITY COMPTROLLER ELIZABETH HOLTZMAN THE SOCIAL QUESTION WAS GEARED TO FIND OUT WHAT THESE FIRMS ARE DOING NOT JUST INTERNALLY BUT EXTERNALLY SHE ADDED YOU CAN'T PUT YOUR HEAD IN THE SAND WHILE THE COMPTROLLER'S OFFICE SAYS IT ISN'T GIVING NUMERICAL GRADES COMPETITION TO GET INTO THE CITY'S UNDERWRITING GROUP IS FIERCE SO LIKE COLLEGE STUDENTS FACED WITH A TOUGH ESSAY QUESTION UNDERWRITERS STRUGGLED TO SHOW CREATIVITY IN THEIR RESPONSES TO THIS TAKEHOME EXAM DUE LAST FRIDAY IN DOCUMENTS PROVIDED BY THE COMPTROLLER'S OFFICE WITH COMPANY NAMES BLACKED OUT ONE BIG FIRM MENTIONED SUMMER INTERNSHIPS PROGRAMS FOR HIGHSCHOOL DROPOUTS AND A PROGRAM FOR EMPLOYEES TO DESIGN AND SELL CHRISTMAS CARDS FOR A LONDON CHARITY FOR THE HOMELESS WHAT NEW YORK DESCRIBES AS A SMALL FIRM SAID IT SPONSORED A JEWISH AND AFRICANAMERICAN CULTURAL GROUP CALLED OPERATION UNDERSTANDING AS WELL AS A REUNION WEEKEND FOR BLACK FAMILIES IN PHILADELPHIA AT LEAST ONE EXECUTIVE OF GOLDMAN SACHS & CO IS ALSO KNOWN TO HAVE BEEN ACTIVE IN OPERATION UNDERSTANDING EVENTS ANOTHER BIG FIRM SAID IT FUNDED A FOUNDATION WITH A BUDGET OF 18 MILLION LAST YEAR ABOUT HALF OF WHICH WENT TO VOLUNTARY SOCIAL SERVICE AGENCIES IN NEW YORK CITY WITH THE REST GOING TO MATCHING GIFT PROGRAMS AT SCHOOLS ARTS AND CULTURE ORGANIZATIONS AMONG OTHER THINGS SOME CITY OFFICIALS SEEM TO BELIEVE THE EXERCISE WILL HAVE A CONSCIOUSNESSRAISING EFFECT ON WALL STREET HOWEVER ONE APPLICANT SAID IT'S NICE TO HAVE A SOCIAL AGENDA BUT WE'RE NOT AT ALL SURE WHAT THAT HAS TO DO WITH THEIR BOND FINANCE 9301200082 930120 MEDIQ DISTRIBUTION IS CLEARED PENNSAUKEN NJ MEDIQ INC SAID ITS PROPOSED TAXFREE DISTRIBUTION OF SHARES IN ITS MENTAL HEALTH MANAGEMENT INC UNIT RECEIVED A FAVORABLE RULING FROM THE INTERNAL REVENUE SERVICE THE COMPANY PLANS TO DISTRIBUTE ONE SHARE OF MENTAL HEALTH MANAGEMENT FOR EVERY EIGHT SHARES OF MEDIQ COMMON AND PREFERRED MENTAL HEALTH IS A MCLEAN VA PSYCHIATRIC CARE SERVICES COMPANY 9301200081 930120 INTERNATIONAL ELF SANOFI PLANS TO ACQUIRE CONTROL OF YVES SAINT LAURENT IN SHARE SWAP BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL FRENCH STATE PHARMACEUTICAL CONCERN ELF SANOFI SA PLANS TO ACQUIRE CONTROL OF YVES SAINT LAURENT SCA THE FRENCH FASHION AND PERFUME COMPANY THROUGH A COMPLEX SHARE SWAP THE COMPANIES SAID THE TRANSACTION WILL LEAVE ELF SANOFI WITH OVERALL CONTROL OF THE YSL GROUP AND MANAGEMENT CONTROL OF THE PERFUME AND COSMETICS BUSINESS DESIGNER YVES SAINT LAURENT AND HIS PARTNER WILL IN TURN RECEIVE A SMALL STAKE IN ELF SANOFI AND TEMPORARY MANAGEMENT CONTROL OF THEIR FASHION BUSINESS THE MOVE COMES AS YSL PREPARES TO REPORT SIGNIFICANTLY LOWER PROFIT FOR 1992 AND FACES AN INCREASINGLY DIFFICULT BUSINESS CLIMATE FOR THE HIGH FASHION INDUSTRY IN GENERAL IT ALSO SOLVES THE QUESTION OF SUCCESSION AT THE HOUSE OF SAINT LAURENT WHERE THE 56YEAROLD DESIGNER HAS HAD BOUTS OF ILL HEALTH THE HOUSE IS RIDING ON ONLY TWO MEN SAID YSL CHAIRMAN PIERRE BERGE WHO TOGETHER WITH MR SAINT LAURENT HOLDS 44 AND MANAGEMENT CONTROL OF THE PUBLICLY TRADED COMPANY I FEARED FOR ITS LONGEVITY THE MERGER SUBJECT TO SHAREHOLDER APPROVAL AT BOTH COMPANIES WILL INVOLVE THE EXCHANGE OF FOUR NEW ELF SANOFI SHARES FOR FIVE EXISTING YSL SHARES ANALYSTS SAID THAT BASED ON CURRENT SHARE PRICES THE SWAP WILL GIVE YSL SHAREHOLDERS A 30 PREMIUM OVER CURRENT MARKET PRICES OR ABOUT 900 FRANCS 165 PER YSL SHARE YSL SHARES WERE TRADING AT 630 FRANCS A SHARE BEFORE THEY WERE SUSPENDED FROM TRADING MONDAY TRADING IS SET TO RESUME TODAY THIS IS NOT A VERY EXPENSIVE PRICE BECAUSE MR BERGE HAD SAID HE WOULD ONLY SELL AT A PRICE OF ABOUT 1300 FRANCS PER SHARE SAID NATALIE SALEUR ANALYST WITH CREDIT SUISSE FIRST BOSTON IN PARIS BUT GIVEN THE BAD ECONOMIC CONDITIONS AND POOR EARNINGS FORECASTS FOR YSL IN 1992 MR BERGE PROBABLY WOULD HAVE GOTTEN LESS IF HE WAITED ANY LONGER UNDER THE AGREEMENT ELF SANOFI THE PHARMACEUTICAL PERFUME AND BEAUTYPRODUCT DIVISION OF THE ELF AQUITAINE PETROCHEMICAL GROUP WILL TAKE OVERALL CONTROL OF THE YSL GROUP BUT THROUGH A SPECIAL CAPITAL INCREASE MR BERGE AND MR SAINT LAURENT WILL KEEP TEMPORARY MANAGEMENT CONTROL OF THE FASHION OPERATIONS THEY WILL ALSO RECEIVE A 7 STAKE IN ELF SANOFI ELF SANOFI INTENDS TO EXPLOIT MARKETING DISTRIBUTION AND PRODUCTION SYNERGIES BETWEEN ITS EXISTING PERFUME AND COSMETICS COMPANIES AND THE YSL FRAGRANCES SAID JEANFRANCOIS DEHECQ CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ELF SANOFI PERFUMES AND COSMETICS ACCOUNTED FOR 82 OF YSL'S 1991 SALES OF 3061 BILLION FRANCS ELF SANOFI'S EXTENSIVE PERFUME BRANDS INCLUDE STAKES IN THE NINA RICCI AND YVES ROCHER LINES AS WELL AS FULL OWNERSHIP OF VAN CLEEF & ARPELS OSCAR DE LA RENTA FENDI AND PERRY ELLIS FOLLOWING THE MERGER MESSRS SAINT LAURENT AND BERGE WILL SUBSCRIBE TO A RESERVED CAPITAL INCREASE OF YVES SAINT LAURENT COUTURE THE GROUP'S FASHION UNIT THE CAPITAL INCREASE WILL LEAVE THE TWO WITH AN EQUITY STAKE OF ABOUT 10 IN THE FASHION BUSINESS AND MAJORITY VOTING RIGHTS IN THE COMPANY MR DEHECQ SAID IN 2001 THOSE VOTING RIGHTS WILL EXPIRE AND ELF SANOFI WILL HAVE THE OPTION OF ACQUIRING THE FASHION BUSINESS MR DEHECQ SAID ELF AQUITAINE CURRENTLY CONTROLS 60 OF ELF SANOFI DIRECTLY AND INDIRECTLY BUT AFTER THE SHARE SWAP WITH YSL ITS SHAREHOLDING WILL DROP TO ABOUT 51 9301200080 930120 CITICORP REPORTS 4THPERIOD EARNINGS OF 280 MILLION EXCEEDING FORECASTS BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK CITICORP REPORTED BETTERTHANEXPECTED FOURTHQUARTER EARNINGS OF 280 MILLION AND SAID ITS TWOYEAR PLAN TO STRENGTHEN THE COMPANY'S FINANCIAL POSITION HAS BEEN COMPLETED FUELED BY STRONG GROWTH IN CONSUMER BANKING AND ONETIME GAINS THE COMPANY'S RESULTS OF 53 CENTS A SHARE WERE ABOVE WALL STREET'S CONSENSUS ESTIMATE OF 31 CENTS A SHARE SENDING THE COMPANY'S SHARES CLIMBING 875 CENTS TO 2450 A NEW 52WEEK HIGH THE EARNINGS COMPARE WITH A YEAREARLIER LOSS OF 133 MILLION OR 53 CENTS A SHARE AND THIRDQUARTER EARNINGS OF 116 MILLION OR 17 CENTS A SHARE FOR THE FULL YEAR CITICORP EARNED 722 MILLION OR 135 A SHARE ITS BEST RESULTS SINCE 1988 THE COMPANY REPORTED A LOSS OF 457 MILLION OR 189 A SHARE FOR THE PREVIOUS YEAR YESTERDAY STANDARD & POOR'S CORP AFFIRMED THE COMPANY'S SENIOR CREDIT RATING AT SINGLEAMINUS BUT CHANGED THE OUTLOOK TO STABLE FROM NEGATIVE CITING STABILIZING LOAN QUALITY AND IMPRESSIVE COST REDUCTIONS ALL AND ALL IT WAS A GOOD QUARTER SAID FRANK DESANTIS BANKING ANALYST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP CITICORP SAID THE IMPROVED RESULTS REFLECT THE COMPLETION OF THE COMPANY'S PLAN INSTITUTED AT THE END OF 1990 TO RAISE CAPITAL SLASH COSTS INCREASE RESERVES FOR BAD LOANS AND SHED ASSETS THE COMPANY HAS RAISED THE KEY TIER ONE EQUITY CAPITAL RATIO TO 49 OF ASSETS FROM 425 IN SEPTEMBER AND 326 AT YEAREND 1990 ITS PROFIT MARGIN BEFORE TAXES AND THE COST OF BAD LOANS HAS WIDENED TO A QUARTERLY RATE OF 18 BILLION IN THE FOURTH QUARTER FROM 154 BILLION IN THE YEAREARLIER QUARTER HEADCOUNT WAS DOWN 1000 EMPLOYEES TO 81000 IN THE FOURTH QUARTER THE PLAN'S GOALS HAVE BEEN ACHIEVED SAID JOHN REED CHAIRMAN AND CHIEF EXECUTIVE IN A PREPARED STATEMENT STILL CITICORP REMAINS UNDER THE WATCHFUL EYE OF BANK REGULATORS AND PLANS ON CONTINUING TO RAISE CAPITAL AND RESERVES BEYOND THE GOALS OF THE FIVEPOINT PLAN CITICORP IS AIMING FOR AN EQUITY CAPITAL RATIO OF AT LEAST 6 TRANSLATING INTO AN ADDITIONAL 2 BILLION TO 3 BILLION IN CAPITAL AND ITS CAPITAL RATIOS REMAIN THE LOWEST OF ANY LARGE BANKING COMPANY WHILE PROFIT MARGINS ARE STRENGTHENING THE COST OF BAD LOANS IS STILL HAMPERING THE COMPANY'S EARNINGS THE PROVISION FOR LOAN LOSSES WHICH INCLUDES WRITEOFFS AND RESERVES ACTUALLY ROSE IN THE QUARTER CLIMBING TO 980 MILLION FROM 927 MILLION IN THE THIRD QUARTER ALTHOUGH DOWN FROM 115 BILLION A YEAR EARLIER THE GOOD NEWS IS THAT THE COMPANY CONTINUES TO BUILD RESERVES AND TOTAL NONPERFORMING ASSETS FELL FOR THE FIRST TIME IN RECENT YEARS YOU CAN ARGUE THEY TOOK ONE LAST MAXIMUM RESERVE BUILDING THIS QUARTER SAID MR DESANTIS THE FOURTH QUARTER INCLUDED A 139 MILLION GAIN ON THE SALE OF ASSETS AND BACK INTEREST FROM BRAZIL AND A 40 MILLION CHARGE FOR CONTINUED COSTCUTTING RAPHAEL SOIFER BANKING ANALYST AT BROWN BROTHERS HARRIMAN & CO ESTIMATES OPERATING EARNINGS WERE ABOUT 26 CENTS A SHARE HELPING EARNINGS WERE THE COST REDUCTIONS OPERATING EXPENSES WERE DOWN 4 AND WIDE NET INTEREST MARGINS BETWEEN BORROWING AND LENDING RATES MEANWHILE CONSUMER BANKING PROFIT ROSE 72 TO 255 MILLION IT'S SLOW BUT STEADY PROGRESS SAID MR SOIFER AT A TIME WHEN BANKS ARE INCREASINGLY DISPOSING OF PROBLEM REAL ESTATE CITICORP REITERATED THAT IT WOULD NOT ENGAGE IN AGGRESSIVE OR BULK SALES CITICORP SAID IT IS CARRYING ITS PROBLEM REAL ESTATE AT AROUND 50 CENTS ON THE DOLLAR DOWN FROM 55 CENTS IN THE THIRD QUARTER LAST YEAR IT COMPLETED 300 MILLION IN SALES OF REAL ESTATE ACQUIRED FROM FORECLOSURES WE'RE NOT CONVINCED SELLING PROPERTY AT ANY KIND OF PRICE IS THE RIGHT THING TO DO SAID THOMAS JONES THE COMPANY'S EXECUTIVE VICE PRESIDENT 9301200079 930120 TLC BEATRICE'S CHAIRMAN DIES OF HEMORRHAGE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK REGINALD F LEWIS THE 50YEAROLD CHAIRMAN AND CONTROLLING SHAREHOLDER OF TLC BEATRICE INTERNATIONAL HOLDINGS CORP DIED OF A CEREBRAL HEMORRHAGE MR LEWIS WAS ONE OF AMERICA'S BESTKNOWN BLACK BUSINESS FIGURES RUNNING A FOOD COMPANY WITH MORE THAN 15 BILLION IN SALES A LAWYER BY TRAINING HE BUILT UP A PERSONAL FORTUNE ESTIMATED AT 400 MILLION CHIEFLY BY ACQUIRING COMPANIES IN LEVERAGED BUYOUTS EARLIER THIS WEEK IN A TRANSITION PLAN DEVELOPED BY MR LEWIS CONTROL OF THE COMPANY WAS HANDED OVER TO A NEW THREEPERSON OFFICE OF THE CHAIRMAN HEADING THAT OFFICE IS MR LEWIS'S HALFBROTHER JEAN S FUGETT JR A 41YEAROLD BALTIMORE LAWYER JOINING MR FUGETT IN THE OFFICE OF THE CHAIRMAN ARE ALBERT FENSTER WHO IS A FORMER PARTNER IN THE NEW YORK LAW FIRM OF KAYE SCHOLER FIERMAN HAYS & HANDLER AND DENNIS JONES HEAD OF THE COMPANY'S EUROPEAN GROCERY PRODUCTS DIVISION MR LEWIS HAD BEEN HOSPITALIZED RECENTLY FOR BRAIN CANCER THE COMPANY DISCLOSED HIS ILLNESS MONDAY A SPOKESMAN DECLINED TO SAY HOW MR LEWIS'S ESTATE WILL BE DIVIDED UP FAMILY FRIENDS HAVE SAID THOUGH THAT THEY EXPECT THE MAIN BENEFICIARIES WILL BE HIS WIFE AND TWO DAUGHTERS MR LEWIS'S OLDEST DAUGHTER LESLIE IS A COLLEGE STUDENT WHO IN 1991 JOINED THE BOARD OF TLC BEATRICE A TLC BEATRICE SPOKESMAN REITERATED THAT THE CLOSELY HELD COMPANY ISN'T FOR SALE IN THE WAKE OF MR LEWIS'S DEATH THERE'S A REAL DEDICATION TO THE ENTERPRISE BY THE COMPANY'S NEW TOP MANAGEMENT HE SAID MR LEWIS WAS VERY CONFIDENT IN THE TEAM THAT HE SELECTED TRADERS HOWEVER CONTINUED TO BID UP THE COMPANY'S STOCK ON EXPECTATIONS THAT TAKEOVER OFFERS WILL EMERGE LATE YESTERDAY JEFFERIES & CO QUOTED TLC BEATRICE AT 55 A SHARE UP 5 FROM THE DAY BEFORE 9301200078 930120 TECHNOLOGY & HEALTH ADVANCED MICRO HEWLETT PLAN COLLABORATION EFFORT AIMED AT DEVELOPING PROCESS TO PUT MORE TRANSISTORS ON CHIPS BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC AND HEWLETTPACKARD CO SAID THEY WILL COLLABORATE ON DEVELOPING A NEW SEMICONDUCTOR MANUFACTURING PROCESS THAT WILL VASTLY INCREASE THE NUMBER OF TRANSISTORS THAT CAN FIT ON A COMPUTER CHIP ADVANCED MICRO A SUNNYVALE CALIF CHIP MAKER AND HP A PALO ALTO CALIF ELECTRONICS CONCERN HOPE TO DEVELOP A WAY TO SHRINK BY HALF THE SPACE BETWEEN CIRCUITS PRINTED ON A SILICON CHIP BY SHRINKING CIRCUITS CHIP MAKERS CAN PUT MORE TRANSISTORS ON CHIPS AND MAKE THEM OPERATE FASTER ADVANCED MICRO SAID IT HOPES TO USE THE PROCESS IT DEVELOPS WITH HP TO MAKE CHIPS CONTAINING FIVE MILLION TO 10 MILLION TRANSISTORS BY COMPARISON INTEL CORP'S NEXTGENERATION PENTIUM CHIP DUE OUT THIS YEAR WILL HAVE SLIGHTLY MORE THAN THREE MILLION TRANSISTORS PER CHIP THE COLLABORATION IS THE LATEST IN AN INCREASING NUMBER OF JOINT EFFORTS AMONG ELECTRONICS COMPANIES AIMED AT POOLING THE BALLOONING COSTS OF DEVELOPING NEW TECHNOLOGIES ADVANCED MICRO SAID IT EXPECTS TO USE THE NEW TECHNOLOGY IN CHIPS PLANNED FOR 1995 THAT WILL COMPETE WITH FUTURE GENERATIONS OF INTEL CHIPS PARTICULARLY AN INTEL MICROPROCESSOR CODENAMED P6 WHICH IS EXPECTED OUT NEXT YEAR HP SAID IT EXPECTS TO USE THE NEW TECHNOLOGY IN FUTURE GENERATIONS OF ITS CHIPS USED IN COMPUTERS AND IN SUCH DEVICES AS PRINTERS AND ELECTRONIC TEST EQUIPMENT ADVANCED MICRO HAS COME UNDER INCREASING PRESSURE TO QUICKLY DEVELOP CLONES OF INTEL'S NEW GENERATIONS OF MICROPROCESSORS FOR THE BOOMING PERSONALCOMPUTER INDUSTRY INTEL SANTA CLARA CALIF HAS SAID IT EXPECTS TO SPEND ABOUT 900 MILLION ON RESEARCH AND DEVELOPMENT THIS YEAR UP FROM ABOUT 800 MILLION IN 1992 MUCH OF THAT IS EXPECTED TO BE USED IN DEVELOPING NEW MANUFACTURING TECHNOLOGIES FOR CHIPS ADVANCED MICRO MUST COMPETE AGAINST FOR THE NEXT SEVERAL YEARS AN ADVANCED MICRO SPOKESMAN SAID THAT BECAUSE THE COMPANY DOESN'T HAVE THE VAST FINANCIAL RESOURCES OF INTEL IT HAS TO GET THE MOST BANG FOR OUR BUCK THE SPOKESMAN SAID THE COMPANY HOPES THE NEW TECHNOLOGY WILL HELP IT HIGHLIGHT THE SPEED AND OTHER FEATURES OF ITS PRODUCTS COMPARED WITH THOSE OF INTEL WE WANT TO ACHIEVE A LEVEL OF INDEPENDENCE FROM INTEL'S PRODUCTS HE SAID NEITHER COMPANY WOULD SAY SPECIFICALLY HOW MUCH WAS BEING SPENT ON THE PROJECT AN ADVANCED MICRO SPOKESMAN SAID THE PROJECT REPRESENTS A SIGNIFICANT EXPENDITURE BOTH COMPANIES SAID THE COLLABORATION WAS COSTEFFECTIVE AND ENABLED EACH COMPANY TO DRAW ON THE STRENGTHS OF THE OTHER FOR A COMPANY SUCH AS HEWLETTPACKARD IT'S HARD FOR THEM TO JUSTIFY THE INVESTMENT THAT WOULD DEVELOP THIS TYPE OF A PROCESS ON THEIR OWN SAID MICHAEL SLATER PUBLISHER OF MICROPROCESSOR REPORT A SEMICONDUCTOR INDUSTRY NEWSLETTER ADVANCED MICRO AND HP SAID THEY WILL SEEK TO CREATE METHODS TO BUILD CIRCUITS THAT ARE 35 MICRON APART WHICH IS ABOUT 200 TIMES THINNER THAN A HUMAN HAIR THAT COMPARES WITH 7 MICRON CIRCUITS THAT ARE TYPICAL OF TODAY'S LEADINGEDGE CHIPS 9301200077 930120 BUSINESS BRIEF QUAKER OATS CO SOME CEREAL PRICES RAISED WHILE OTHERS ARE DROPPED QUAKER OATS CO SAID IT IS RAISING PRICES ON SOME READYTOEAT CEREALS BY AS MUCH AS 7 BUT DROPPING THOSE OF OTHERS AS MUCH AS 9 EFFECTIVE TODAY QUAKER ALSO SAID PRICES OF SOME COLDCEREAL BRANDS WOULDN'T CHANGE ITS REGULAR HOT OATMEAL LINE ISN'T INCLUDED IN THE NEW PRICING BUT PACKETS OF INSTANT OATMEAL ARE THE DIVERSE PRICING ACTIONS CAME AFTER A BRANDBYBRAND ANALYSIS DESIGNED TO MAKE THE PRODUCTS DIRECTLY COMPETITIVE WITH THEIR MAJOR RIVALS A SPOKESMAN FOR THE CHICAGO COMPANY SAID QUAKER LAST RAISED PRICES LAST JUNE ITS LATEST MOVE FOLLOWS BY TWO WEEKS PRICE INCREASES AVERAGING 32 BY KELLOGG CO AND 35 BY GENERAL MILLS INC 9301200076 930120 IBM'S 4THQUARTER DEFICIT HIT A RECORD 546 BILLION OPERATING LOSS OF 45 MILLION IS THE COMPANY'S FIRST OUTLOOK REMAINS POOR BY LAURENCE HOOPER STAFF REPORTER OF THE WALL STREET JOURNAL INTERNATIONAL BUSINESS MACHINES CORP REPORTED ITS FIRSTEVER OPERATING LOSS CLOSING OUT A DISASTROUS YEAR WITH A RECORD 546 BILLION FOURTHQUARTER DEFICIT THE SHOWING WAS SLIGHTLY WORSE THAN IBM HAD FORECAST AND HIGHLIGHTED THE DEPTH OF THE COMPANY'S TROUBLES THE NARROW 45 MILLION OPERATING LOSS WASN'T AS BAD AS SOME PESSIMISTS' WORST FEARS BUT IBM'S DISMAL PERFORMANCE STILL RAISED NEW RED FLAGS ABOUT THE YEAR AHEAD EXCLUDING A 72 BILLION PRETAX CHARGE IN THE QUARTER TAKEN MOSTLY TO PAY FOR A BIG RETRENCHMENT UNVEILED LAST MONTH IBM'S OPERATING LOSS FOR THE PERIOD WAS EIGHT CENTS A SHARE ROUGHLY IN LINE WITH ITS FORECAST OF BREAKEVEN RESULTS INCLUDING THE ENORMOUS CHARGE IBM'S FOURTHQUARTER NET LOSS AMOUNTED TO 957 A SHARE COMPARED WITH A RESTATED LOSS OF 146 BILLION OR 255 A SHARE A YEAR EARLIER REVENUE FELL TO 1956 BILLION FROM 2197 BILLION FOR ALL OF 1992 BIG BLUE REPORTED A RECORD NET LOSS OF 497 BILLION THE LOSS ECLIPSED EVEN THE 445 BILLION DEFICIT POSTED BY GENERAL MOTORS CORP FOR 1991 WITH SUCH HUMBLING STATISTICS AND NO END IN SIGHT TO THE COMPANY'S TROUBLES THERE WAS LITTLE PROMISE THAT CHAIRMAN JOHN AKERS WOULD SEE ANY RELIEF FROM ANGRY INVESTORS A PARTICULARLY OMINOUS SIGN ABOUT IBM'S FUTURE SECURITIES ANALYSTS SAID WAS THAT THE COMPANY'S HUGE MINICOMPUTER BUSINESS FALTERED IN THE FOURTH PERIOD AND COULD LOSE ITS STATUS AS A RELIABLE GROWTH GENERATOR IN ADDITION IBM'S SUCCESSFUL WORKSTATION LINE LOST STEAM DURING THE QUARTER AFTER NEARLY TWO YEARS OF FAST GROWTH SALES OF BIG MAINFRAME COMPUTERS SLOWED EVEN MORE SHARPLY THAN EXPECTED ACCELERATING THE SUDDEN DOWNTURN IN IBM'S CORE BUSINESS AND PERSONAL COMPUTERS CONTINUED TO SHOW LOSSES AS REVENUE FELL EVEN THOUGH SHIPMENTS ROSE 50 TO RECORD LEVELS THE COMPANY DIDN'T SAY MUCH ABOUT WHAT IT EXPECTS IN 1993 EXCEPT TO REPEAT ITS STATEMENTS ABOUT AN UNFAVORABLE OUTLOOK FOR THE FORESEEABLE FUTURE DIFFICULT PROBLEMS REMAIN AHEAD FOR IBM SAID MR AKERS IN A STATEMENT CITING IBM'S FAMILIAR AFFLICTIONS THE FASTCHANGING COMPUTER INDUSTRY AND WEAK ECONOMIES WORLDWIDE MR AKERS TRIED TO ACCENTUATE THE POSITIVE IN HIS REPORT LISTING IBM'S VARIOUS EFFORTS TO MAKE ITSELF MORE COMPETITIVE AND SAYING HE IS CONFIDENT THAT WE ARE ON THE RIGHT PATH BUT HE CONCEDED THAT THE LATEST RESULTS ARE NOT ACCEPTABLE TO US OR TO OUR SHAREHOLDERS OVERALL IBM'S EQUIPMENT SALES FELL A PRECIPITOUS 20 FROM A YEAR EARLIER FUELING AN 11 DECLINE IN REVENUE THAT'S A STARTLING DROP EVEN IN TOUGH ECONOMIC TIMES SINCE THE FOURTH QUARTER IS TRADITIONALLY IBM'S BEST PERIOD THE SHOWING VIRTUALLY GUARANTEES THAT IBM WILL POST ANOTHER OPERATING LOSS FOR THE SEASONALLY WEAK FIRST QUARTER IBM SHARES INITIALLY ROSE SLIGHTLY ON THE REPORT APPARENTLY BECAUSE IT WASN'T SIGNIFICANTLY WORSE THAN EXPECTED BUT THE STOCK QUICKLY SETTLED BACK TO FINISH AT 48375 A SHARE DOWN 1125 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FOR THE YEAR IBM RACKED UP PRETAX RESTRUCTURING CHARGES OF 116 BILLION TO COVER MASSIVE WORK FORCE CUTS AND CAPACITY REDUCTIONS ITS 1992 NET LOSS TRANSLATED TO 870 A SHARE COMPARED WITH A RESTATED 286 BILLION OR 501 A SHARE IN 1991 REVENUE DROPPED SLIGHTLY TO 6452 BILLION FROM 6477 BILLION IBM'S 1992 RESULTS INCLUDE A 19 BILLION ADDITION TO ITS BOTTOM LINE FOR AN ACCOUNTING CHANGE REGARDING INCOME TAXES WHILE ITS 1991 FIGURES INCLUDE A 226 BILLION CHARGE FOR A CHANGE INVOLVING RETIREES' MEDICAL BENEFITS WITH THE PRICE OF IBM'S SHARES FALLING 50 IN THE PAST SIX MONTHS A 285 BILLION DROP IN MARKET VALUE SOME ANGRY SHAREHOLDERS ALREADY HAVE CALLED FOR MR AKERS TO SURRENDER AT LEAST HIS CHAIRMAN'S POST TO AN OUTSIDER AN IBM SPOKESMAN SAID HOWEVER THAT MR AKERS RETAINS THE CONFIDENCE OF THE BOARD IBM'S DIRECTORS ARE SET TO MEET NEXT WEEK WHEN ANALYSTS EXPECT THEM TO DELIVER ANOTHER BLOW TO THE COMPANY'S IMAGE BY CUTTING IBM'S ONCESACROSANCT ANNUAL DIVIDEND OF 484 A SHARE SEVERAL ANALYSTS SAID IBM'S CURRENT SHARE PRICE REFLECTS THE ASSUMPTION THAT THE PAYOUT WILL BE SLICED ROUGHLY IN HALF GIVING THE STOCK A RETURN OF 5 OR SO NO SIGNIFICANT STOCK MOVE IS LIKELY TO OCCUR BEFORE INVESTORS SEE WHETHER THIS SCENARIO IS BORNE OUT THEY ADDED BUT EVEN IF THE DIVIDEND ACTION IS EXACTLY AS EXPECTED ANALYSTS AREN'T CERTAIN ABOUT WHAT THE IMPACT WOULD BE ON IBM'S SHARE PRICE I THINK WALL STREET ISN'T GOING TO KNOW HOW TO REACT NEXT WEEK NO MATTER WHAT HAPPENS TO THE DIVIDEND SAID JAY STEVENS OF DEAN WITTER REYNOLDS WHO THINKS A 75 CUT IN THE PAYOUT WOULD BE GOOD NEWS BECAUSE OF ALL THE NEGATIVE SIGNALS IN IBM'S LATEST REPORT MOST ANALYSTS SPENT YESTERDAY CUTTING THEIR 1993 EARNINGS ESTIMATES AND SAID THERE'S STILL PLENTY OF ROOM FOR THE STOCK TO DROP I DON'T THINK THE LIGHT AT THE END OF THE TUNNEL IS CLEAR YET SAID STEVE MILUNOVICH OF MORGAN STANLEY MR MILUNOVICH NOTED THAT 1993 DOESN'T LOOK REALLY GOOD FOR IBM PARTICULARLY COMPARED WITH OTHER BIG COMPUTER COMPANIES THAT ARE BETTER FOCUSED ON GROWTH AREAS SUCH AS HEWLETTPACKARD CO OR ONES THAT MAY HAVE TAKEN THEIR WORST LUMPS SUCH AS DIGITAL EQUIPMENT CORP WHILE MANY ANALYSTS HADN'T FINISHED THEIR CALCULATIONS A NEW CONSENSUS ON IBM'S 1993 PROFIT SEEMED LIKELY TO SETTLE AROUND 2 A SHARE DOWN FROM 275 OR SO BEFORE THE REPORT MOREOVER MOST ANALYSTS SAID THEY EXPECT IBM TO TAKE FURTHER RESTRUCTURING CHARGES DURING 1993 EVEN THOUGH THE COMPANY HAS SAID IT WON'T DO SO UNLESS CONDITIONS DETERIORATE FURTHER MANY ANALYSTS' DOWNBEAT COMMENTARY HAD TO DO WITH IBM'S ADMISSION THAT ITS PROFIT MARGINS WOULD SHRINK EVEN FURTHER IN 1993 DESPITE THE DEEP COST CUTS ALREADY PLANNED SOME OF THE MARGIN EROSION IS DUE TO PRICE SLASHING ACROSS THE COMPUTER INDUSTRY BUT SOME ALSO RELATES TO THE FASTCHANGING NATURE OF IBM A COMPANY THAT BECAME FAT ON MAINFRAMES AND THEIR BLOATED PROFITS IS NOW BETTING THAT ITS FUTURE GROWTH WILL COME FROM LOWERMARGIN SERVICES AND THE CUTTHROAT BUSINESS IN SMALLER MACHINES INDEED WHILE IBM BOASTED THAT ITS NONHARDWARE SALES HAD RISEN TO ACCOUNT FOR 48 OF TOTAL REVENUE IN 1992 FROM 43 IN 1991 THE PHENOMENON WAS LARGELY DUE TO BIG BLUE'S CRATERING MAINFRAME SALES IBM SAID ITS WEAKEST RESULTS IN THE FOURTH QUARTER CAME FROM EUROPEAN OPERATIONS FOLLOWED BY ITS BIG US BUSINESS BOTH AREAS POSTED DOUBLEDIGIT PERCENTAGE DECLINES IN REVENUE IBM'S ASIA PACIFIC REGION PERFORMED SLIGHTLY BETTER BUT STILL HAD A DROP IN REVENUE THE COMPANY SAID EUROPEAN WEAKNESS WAS LARGELY RESPONSIBLE FOR WHAT IT DESCRIBED ONLY AS A DOUBLEDIGIT DROP IN REVENUE FROM ITS AS/400 MINICOMPUTER WHICH IN THE PAST HAD BEEN A LONE BRIGHT SPOT WHILE IBM MADE A POINT OF SAYING IT REMAINS PLEASED WITH THE AS/400'S PERFORMANCE ANALYSTS SAID THE DROP IN ITS SALES IS WORRISOME MR STEVENS OF DEAN WITTER SAID THAT THE MACHINE IS STILL A STRONG SELLER IN THE US WHERE IT CONTINUES TO BE A MARKETSHARE LEADER BUT THAT THE EUROPEAN DECLINE MAY BE AN EARLY SIGN OF TROUBLE THEY'RE TRYING TO HIDE BEHIND THE WEAK ECONOMIES HE SAID IBM PLANS TO INTRODUCE A REVAMPED AS/400 FAMILY IN THE MIDDLE OF NEXT MONTH WHICH COULD PROVIDE A BOOST TO SALES BUT THE REAL ISSUE MAY BE A GENERAL SHIFT AWAY FROM PROPRIETARY TECHNOLOGY SUCH AS THAT IN THE IBM MINICOMPUTER MR STEVENS SAID IBM ALSO PLANS TO ADD TO ITS MAINFRAME AND WORKSTATION LINES NEXT MONTH MAKING FEBRUARY A KEY PRODUCTINTRODUCTION PERIOD FOR THE COMPANY MAINFRAMES WILL GAIN A NEW HIGHEND MODEL AND MORE POWER FOR THE PRICE FOR EXAMPLE WHILE IBM WILL ADD A PARALLELPROCESSING VERSION OF ITS WORKSTATION PRODUCT THAT LINKS UP MANY MICROPROCESSORS TO WORK ON A PROBLEM DESPITE SUCH MOVES ANALYSTS SAID THEY EXPECT A VIRTUAL REPETITION OF SALES TRENDS FOR THE VARIOUS IBM PRODUCTS DURING 1993 A DOUBLEDIGIT DECLINE IN MAINFRAMES A SLIGHT DROP IN MINICOMPUTERS AND SLOWING GROWTH FOR WORKSTATIONS PERHAPS TO THE 30 LEVEL OF 1992 IN PERSONAL COMPUTERS IBM EXPECTS TO CONTINUE INCREASING ITS SHIPMENTS THROUGH THE FIRST QUARTER AND APPEARS TO BE REGAINING MARKET SHARE BUT PC PRICES ARE STILL DROPPING AND IBM'S QUASIINDEPENDENT IBM PERSONAL COMPUTER CO REMAINS UNPROFITABLE IBM HAS SAID IT EXPECTS TO MAKE A PROFIT IN PCS FOR 1993 BUT ANALYSTS SAID THAT'S A TOUGH TARGET AND EVEN IF IT HAPPENS SAID MR MILUNOVICH OF MORGAN STANLEY IT DOESN'T SOLVE THE COMPANY'S PROBLEMS 9301200075 930120 BUSINESS BRIEF MA HANNA CO COMPANY AGREES TO ACQUIRE DIVISION OF COOKSON AMERICA MA HANNA CO SAID IT SIGNED A PRELIMINARY AGREEMENT TO ACQUIRE THE ENGINEERED MATERIALS DIVISION OF COOKSON AMERICA INC PROVIDENCE RI TERMS WEREN'T DISCLOSED THE DIVISION CONSISTS OF TWO BUSINESSES MONMOUTH PLASTICS WHICH PRODUCES FLAMERETARDANT POLYOLEFINS AND TEXAPOL CORP WHICH PRODUCES PLASTICS COMPOUNDS BASED IN ENGINEERING THERMOPLASTICS THE TWO BUSINESSES HAVE TOTAL ANNUAL SALES OF ABOUT 32 MILLION MA HANNA SAID THE PROPOSED TRANSACTION IS SUBJECT TO APPROVAL OF THE BOARDS OF BOTH COMPANIES AND MA HANNA EXPECTS THE DEAL TO BE COMPLETED AT THE END OF THE FIRST QUARTER COOKSON AMERICA IS THE NORTH AMERICAN OPERATION OF COOKSON GROUP PLC WHICH HAS BUSINESSES IN PLASTICS CERAMICS AND SPECIALTY CHEMICALS AMONG OTHER THINGS MA HANNA CLEVELAND MAKES FORMULATED POLYMERS AND FORMULATED COLORANTS FOR PLASTICS 9301200074 930120 BUSINESS BRIEF TOYOTA MOTOR CORP FIRM'S US UNIT TO INVEST IN VEHICLEPARTS WAREHOUSE TOYOTA MOTOR SALES USA TORRANCE CALIF A UNIT OF TOYOTA MOTOR CORP TOKYO SAID IT WILL INVEST MORE THAN 75 MILLION TO WAREHOUSE AND DISTRIBUTE VEHICLE REPLACEMENT PARTS IN THE US ROBERT E BENNETT FORMERLY VICE PRESIDENT OF VEHICLE PROCESSORS INC TOYOTA'S NEWCAR PREPARATION AND TRANSPORTATION COMPANY WAS NAMED VICE PRESIDENT AND GENERAL MANAGER OF TOYOTA'S NEW NORTH AMERICAN PARTS LOGISTICS DIVISION TOYOTA HAS IMPORTED PARTS FOR ITS VEHICLES FROM JAPAN FOR USE IN THE US BUT THOSE CAN TAKE AS MUCH AS 40 DAYS TO REACH NORTH AMERICAN DISTRIBUTORS BY WAREHOUSING PARTS IN THE US TOYOTA SAID IT WILL SLASH THE SUPPLY LEAD TIME FOR NORTH AMERICAN DISTRIBUTORS TO SEVEN DAYS TOYOTA SAID THAT BY 1995 IT PLANS TO PURCHASE 50 OF ITS PARTS FROM US COMPANIES COMPARED WITH 42 CURRENTLY THE NEW FACILITY WHICH WILL BE BUILT IN ONTARIO CALIF WILL EMPLOY 1000 WORKERS ABOUT 400 OF THE DIVISION'S EMPLOYEES WILL BE NEW HIRES THE COMPANY SAID 9301200073 930120 BUSINESS BRIEF MARTIN MARIETTA CORP FIRM'S NIGHT VISION SYSTEM PICKED BY GREECE FOR FIGHTERS MARTIN MARIETTA CORP BETHESDA MD SAID THE GREEK GOVERNMENT SELECTED THE AEROSPACE COMPANY'S LANTIRN NIGHT VISION SYSTEMS FOR INSTALLATION IN 40 GENERAL DYNAMICS CORP F16 C/D FIGHTERS THAT THE GREEK GOVERNMENT HAS AGREED TO BUY MARTIN MARIETTA VALUED THE ORDER AT 100 MILLION AND SAID IT EXPECTS TO RECEIVE INITIAL FUNDING FROM THE GREEK GOVERNMENT IN APRIL WITH DELIVERY OF THE SYSTEMS AND RELATED EQUIPMENT IN 1996 UNDER TERMS OF THE SALE THE GREEK GOVERNMENT WILL RECEIVE 24 LANTIRN NAVIGATION PODS WHICH ALLOW FIGHTER PILOTS TO FLY BENEATH ENEMY RADAR IN TOTAL DARKNESS AT SPEEDS EXCEEDING 500 MPH AND 16 TARGETING PODS WHICH ALLOW PILOTS TO ATTACK SEVERAL TARGETS ON A SINGLE FLIGHT PASS ON DEC 31 GREECE SIGNED A 18 BILLION AGREEMENT WITH GENERAL DYNAMICS TO BUY THE F16 FIGHTERS ALONG WITH SPARE ENGINES AND A NIGHT VISION SYSTEM GENERAL ELECTRIC CO WAS AWARDED THE CONTRACT FOR 10 SPARE ENGINES GENERAL DYNAMICS SAID 9301200072 930120 LET CLINTON BE CLINTON BY BEN WATTENBERG IF ALL GOES WELL IF BILL CLINTON STAYS WITH HIS PROGRAM THE INAUGURATION THAT BEGINS HIS PRESIDENCY TODAY SHOULD MARK THE END OF A LONG JOURNEY FOR MANY DEMOCRATS WHO WERE ONCE TRUE BELIEVERS AND THEN WATCHED WITH INCREDULOUS DISMAY AS THEIR PARTY WENT OVERBOARD I OFFER HERE SOME GENERAL AND SOME PERSONAL TESTIMONY ONCE DEMOCRATS STOOD FOR MERIT GROWTH AND INTERNATIONALISM THOSE IDEAS WERE IN TUNE WITH THE VALUES OF AMERICA AND MINE TOO I WAS BORN IN 1933 SO I WAS 20 BEFORE I SAW THAT REPUBLICANS WERE PERMITTED TO BECOME PRESIDENT WHO NEEDED THEM WITH SUCH GOOD DEMOCRATS AROUND AND SO I WAS NOT SURPRISED WHEN I HEARD IN 1967 THAT LYNDON JOHNSON FOR WHOM I WAS A SPEECHWRITER HAD SAID HE WANTED ME ON HIS 1968 CAMPAIGN PLANE BECAUSE THAT WATTENBERG HE REALLY HATES REPUBLICANS AN OVERSTATEMENT BY A GREAT MAN BUT IN THE LATE 1960S SOMETHING WENT WRONG DEMOCRATS LOST AND WENT INTO OPPOSITION ONLY PARTLY BECAUSE OF VIETNAM MANY DEMOCRATS OF THE LEFT SIGNED ON TO THE TRENDY IDEA THAT AMERICA WAS A SICK SOCIETY AMERICA WAS SAID TO BE RACIST SEXIST POLLUTING SEXUALLY REPRESSED JINGOIST CORRUPT ARROGANT AND GUILTY SUCH A NEGATIVE VIEW OF AMERICA TENDED TO ENSHRINE VICTIMS WHO NOT ONLY NEEDED HELP BUT WERE ENTITLED TO IT LIBERAL SPECIAL INTEREST GROUPS RACIAL SEXUAL ENVIRONMENTAL CONSUMERIST FORMED TO GAIN SUCH ENTITLEMENTS AND TO DEFEND THEM DEMOCRATIC POLICY AT LEAST AS EXPLICATED BY THE MEGAPHONE LEFT DURING THE LATE 1960S AND 1970S MADE A UTURN GROWTH WAS SEEN AS ENVIRONMENTALLY DEGRADING MERIT WAS RACIST INTERNATIONALISM WAS IMPERIALISM THIS TURNED OUT TO BE A DISASTER IN THE LATE 1960S AND LATER THE VOTING BEHAVIOR OF MANY AMERICANS REFLECTED THEIR VIEW THAT THEIR VALUES HAD BEEN SCORNED BY THE DEMOCRATIC PARTY IN 1970 RICHARD SCAMMON AND I WROTE THE REAL MAJORITY WHICH TOLD DEMOCRATS THAT IT WASN'T JUST THE ECONOMY STUPID A NEW ISSUE WAS SURFACING WE CALLED IT THE SOCIAL ISSUE TODAY IT MIGHT BE CALLED VALUES AND WE SAID THAT IT WOULD CLOBBER DEMOCRATS IF THEY DIDN'T PAY ATTENTION SOME DEMOCRATS TRIED TO CHANGE THINGS IN 1972 I WAS AMONG A GROUP OF DEMOCRATS WHO FOUNDED THE COALITION FOR A DEMOCRATIC MAJORITY IN HOPES OF MOVING THE PARTY BACK TO THE CENTER CDM MEMBERS INCLUDED BAYARD RUSTIN TOM FOLEY ZBIGNIEW BRZEZINSKI AND JEANE KIRKPATRICK AND INDEED FOR A WHILE IT SEEMED AS IF THE PARTY MIGHT CHANGE IN 1976 JIMMY CARTER RAN AND WON AS AN ANTIWASHINGTON ACTIVISTMODERATE AS PRESIDENT HOWEVER HE WAS ROLLED BY THE ACTIVIST LEFT THE DEMOCRATS OF THE 1980S WENT INTO A RECIDIVIST MODE IN 1984 JESSE JACKSON EMERGED AS THE STANDARDBEARER OF THE ACTIVIST LEFT EIGHT DEMOCRATS RAN FOR THE NOMINATION AND NO ONE DISAGREED WITH MR JACKSON VOTERS WONDERED IF YOU DON'T DISAGREE WITH HIM AREN'T YOU AGREEING WITH HIM THE ACTIVISTS SAID DON'T WORRY THERE WERE THESE GREAT ISSUES THAT WOULD SWAMP THAT SILLY RONALD REAGAN AND UNSEAT HIM THE NUCLEAR FREEZE THE GENDER GAP EL SALVADOR NUCLEAR POWER THEY DIDN'T AND HE WASN'T AMERICA SELFCORRECTS THERE HAD TO BE A TURN AND THERE WAS A QUIET MEETING AT THE 1984 SAN FRANCISCO CONVENTION WOULD PROVE TO BE HISTORIC THE DEMOCRATIC LEADERSHIP COUNCIL WAS FORMED SOON ITS ROLLS WOULD INCLUDE THE YOUNG GOVERNOR OF ARKANSAS BILL CLINTON THE DLC WAS ATTACKED BECAUSE IT ATTACKED THE MONOPOLY OF THE MEGAPHONE IT WAS CALLED THE SOUTHERN WHITE BOYS CAUCUS BUT THE DLC WAS ABOUT IDEAS NOT ABOUT DEMOGRAPHICS WORK BEGAN TO CREATE A SKELETAL PROGRAM THAT COULD MATCH SOUND AMERICAN VALUES TO NEW POLICIES FOR A NEW TIME LATER AN ALIGNED THINK TANK THE PROGRESSIVE POLICY INSTITUTE PPI WAS FORMED TO PUT FLESH ON THE BONES IN 1990 TWO YEARS AFTER THE USUAL LIBERAL AGENDA LED TO ANOTHER DEMOCRATIC DEFEAT BILL CLINTON BECAME CHAIRMAN OF THE DLC THE HARD WORK TOWARD A VALUESBASED LIBERALISM WENT ON WITH MR CLINTON AN ACTIVE PARTICIPANT IN 1991 MR CLINTON ANNOUNCED HIS CANDIDACY IN A SPEECH PUTTING FORTH THE DLC PHILOSOPHY HE BOOSTED IT ON THE STUMP PROMULGATED IT IN THE PLATFORM DROVE IT HOME IN DEBATES CONFIRMED IT IN HIS ACCEPTANCE SPEECH AND REENDORSED IT AFTER THE ELECTION THE CORE IDEAS OF THE DLC AS REFINED AND REEXPRESSED IN THE PPI'S NEW MANDATE FOR CHANGE ARE VERY DIFFERENT FROM THE RECENT LIBERAL ORTHODOXY THAT TOOK DEMOCRATS AND AMERICA FOR A RIDE THE THEMES ARE OPPORTUNITY RECIPROCAL RESPONSIBILITY AND ENTREPRENEURIAL GOVERNMENT TAKEN TOGETHER THEY REPRESENT NOTHING LESS THAN A NEW PUBLIC VALUE SYSTEM FOR DEMOCRATS A MOVE FROM THE WELFARE STATE TO THE ENABLING STATE WOULD BILL CLINTON HAVE WON THE ELECTION HAD HE NOT BEEN A DLCSTYLE DEMOCRAT I DOUBT IT WHAT WAS UNIQUE ABOUT THE CLINTON CAMPAIGN WAS NOT THAT IT FOCUSED ON THE ECONOMY IT ALSO CONCENTRATED ON VALUES SPECIFICALLY ON RESPONSIBILITY HAD AN ORTHODOX LIBERAL BEEN NOMINATED HE WOULD HAVE LOST IN THE ORTHODOX WAY MR CLINTON DID WHAT WAS RIGHT FOR AMERICA VALUES ARE AT THE HEART OF OUR MOST SERIOUS CONCERNS OUR EDUCATION SYSTEM HAS PROBLEMS BECAUSE OF DISCIPLINE VALUES WE ARE HAUNTED BY CRIME VALUES OUR WELFARE SYSTEM IS UPSIDE DOWN BECAUSE MARRIAGE IS GOING OUT OF FASHION VALUES THE LIST IS ENDLESS REPUBLICANS WIN WHEN THEY CAN MONOPOLIZE THESE SOCIAL ISSUES THEY LOSE WHEN THEY CAN'T CAN BILL CLINTON BE A GREAT PRESIDENT WITHOUT THE DLC IDEAS DOUBTFUL THE MEGAPHONE LEFT IS NOW UNCHARACTERISTICALLY QUIET BUT IT HASN'T GONE AWAY ITS MEMBERS HAVE ALREADY GOTTEN THEIR SHARE OF HIGH APPOINTMENTS TOO MANY FOR MY TASTE AND THERE WILL BE FIGHTS TO FIGHT AS JIMMY CARTER FOUND OUT WHAT MR CLINTON HAS THAT MR CARTER DIDN'T HAVE IS A STATED BODY OF SERIOUS IDEAS EMANATING FROM THE DLC IF MR CLINTON APPOINTS THOSE WHO BELIEVE IN HIS VIEWS ESPECIALLY NOW AT THE CRUCIAL SUBCABINET LEVEL AND IF HE DEMANDS THAT ALL HIS APPOINTEES CARRY OUT THE PROGRAMS HE RAN ON HE WILL PROSPER SO FAR THE CARDS ARE MIXED WE SHALL SEE HE HAS DONE NOTHING THAT PRECLUDES OR GUARANTEES LIVING UP TO HIS MODERATEACTIVIST IDEALS SO I SALUTE THE DLC THE PPI AND THE CLINTONIST VISION THE BALANCE OF INTELLECTUAL POWER HAS BEEN CHANGED TO AMERICA'S BENEFIT THIS HAS NOTYETQUITE SAVED THE DEMOCRATIC PARTY FROM ITSELF BUT IT HAS REESTABLISHED A LEVEL PLAYING FIELD IN THE STRUGGLE FOR THE PARTY'S SOUL MR WATTENBERG IS A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE IN WASHINGTON THIS IS ADAPTED FROM A SPEECH TO THE DEMOCRATIC LEADERSHIP COUNCIL 9301200071 930118 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9301200070 930120 WHAT'S NEWS WORLDWIDE IRAQ PROCLAIMED A UNILATERAL CEASEFIRE AND SAID UN FLIGHTS COULD RESUME AFTER A WEEK OF HOSTILITIES BAGHDAD ANNOUNCED IT WOULD STOP FIRING ON ALLIED PLANES PATROLLING NOFLY ZONES IN NORTHERN AND SOUTHERN IRAQ THE IRAQI GOVERNMENT DESCRIBED THE MOVE AS A GESTURE OF GOOD WILL TOWARD THE CLINTON ADMINISTRATION A CLINTON AIDE REACTED SKEPTICALLY SAYING IRAQ MUST GO FURTHER AND FULLY COMPLY WITH TERMS OF THE GULF WAR CEASEFIRE BAGHDAD ALSO SENT A LETTER TO UN DISARMAMENT OFFICIALS THAT OFFERED TO LET WEAPONS INSPECTION FLIGHTS RESUME WITHOUT CONDITIONS THE UN'S CHIEF ARMS INSPECTOR SAID THE TERMS OF THE IRAQI OFFER WERE ACCEPTABLE AND FLIGHTS WOULD RESUME THE UN'S CHIEF ASKED THE SECURITY COUNCIL TO CONSIDER SENDING ABOUT 3000 ARMED PEACEKEEPERS TO KUWAIT TO HELP PATROL THE EMIRATE'S BORDER WITH IRAQ THE ISRAELI PARLIAMENT LEGALIZED CONTACTS WITH THE PALESTINE LIBERATION ORGANIZATION WHICH HAD BEEN SHUNNED AS A TERRORIST GROUP THE KNESSET VOTED 3920 TO REPEAL A SWEEPING BAN ON INFORMAL MEETINGS WITH THE PLO THE VOTE WAS A POLITICAL VICTORY FOR PRIME MINISTER RABIN'S LABORLED COALITION OVER RIGHTWING OPPOSITION PARTIES CLINTON PLEDGED TO BRING A NEW SPIRIT OF INNOVATION TO WASHINGTON ADDING I DESPERATELY WANT TO MAKE A DIFFERENCE SPEAKING TO A GROUP OF PAST AND PRESENT GOVERNORS CLINTON RECITED A LONG LIST OF POLICY OBJECTIVES AND SAID THE GOVERNMENT MUST FIND A WAY TO EXPERIMENT TO ADOPT POLICIES THAT WORK AND REJECT THOSE THAT DO NOT ZOE BAIRD ACKNOWLEDGED VIOLATING FEDERAL LAW BY EMPLOYING TWO ILLEGAL IMMIGRANTS AS HOUSEHOLD HELP AND FAILING TO PAY SOCIAL SECURITY TAXES ON THEIR WAGES CLINTON'S ATTORNEY GENERALDESIGNATE TOLD MEMBERS OF THE SENATE JUDICIARY COMMITTEE IT WAS WRONG AND I TAKE FULL RESPONSIBILITY FOR IT FBI DIRECTOR SESSIONS WAS REPRIMANDED FOR A CLEAR PATTERN OF YOUR TAKING ADVANTAGE OF THE GOVERNMENT AND ORDERED TO REIMBURSE THE TREASURY FOR IMPROPERLY BILLING THE FBI FOR PERSONAL EXPENSES ACCORDING TO DOCUMENTS RELEASED BY THE JUSTICE DEPARTMENT SESSIONS SAID THE DEPARTMENT'S PROBE WAS CONDUCTED IN AN UNFAIR MANNER SERB FORCES IN BOSNIA ARE CONDUCTING A CAMPAIGN OF SYSTEMATIC SHELLING AND STARVATION OF MUSLIMS THAT DWARFS ANYTHING SEEN IN EUROPE SINCE NAZI TIMES THE STATE DEPARTMENT REPORTED THE DEPARTMENT SAID CIVILIANS ARE THE MAIN TARGETS OF THE SERB ACTION WHICH BORDERS ON GENOCIDE MANDELA SAID HE WAS CONDITIONALLY READY TO CALL FOR THE LIFTING OF ALL REMAINING INTERNATIONAL SANCTIONS AGAINST SOUTH AFRICA THE BLACK LEADER TOLD REPORTERS HE WOULD RECOMMEND SUCH ACTION TO OFFICIALS OF HIS AFRICAN NATIONAL CONGRESS IN EXCHANGE FOR CORPORATE EFFORTS TO CREATE JOBS AND AN ACCORD ON ELECTIONS FOR AN INTERIM GOVERNMENT THE KENYAN GOVERNMENT ANNOUNCED IT HAD ASKED THE UN TO SEND HOME IMMEDIATELY ALL 500000 REFUGEES IN THE COUNTRY BECAUSE OF BANDITRY AND KENYA'S STRAINED RESOURCES MOST OF THE REFUGEES COME FROM SOMALIA ETHIOPIA AND SUDAN THE SUPREME COURT GAVE THE CLINTON ADMINISTRATION AN EARLY OPPORTUNITY TO CONFRONT OPERATION RESCUE AND OTHER GROUPS THAT STAGE PROTESTS TO CLOSE ABORTION CLINICS OR BLOCK WOMEN'S ACCESS TO THEM THE COURT SAID IT WANTS TO KNOW WHETHER JUSTICE DEPARTMENT LAWYERS THINK A FEDERAL RACKETEERING LAW CAN BE USED TO SUE THE PROTESTERS FIVE NAVY SHIPS HAVE BEEN SENT TO HELP THE COAST GUARD TURN BACK HAITIAN REFUGEE BOATS HEADED FOR THE US AND TO PROVIDE EMERGENCY ASSISTANCE TO THE REFUGEES PENTAGON OFFICIALS SAID ENDEAVOUR AND ITS CREW OF FIVE LANDED IN FLORIDA ENDING A SIXDAY SHUTTLE MISSION THAT FEATURED A SPACEWALK BY TWO CREWMEN AND OTHER PREPARATORY STEPS FOR CONSTRUCTING SPACE STATION FREEDOM GUATEMALA'S PRESIDENT DECLARED HIS GOVERNMENT WAS WILLING TO SIGN A CEASEFIRE WITH LEFTIST REBELS AND HE ASKED THE UN TO MONITOR DEMOBILIZATION OF THE INSURGENTS REBEL LEADERS DIDN'T IMMEDIATELY RESPOND DIED REGINALD F LEWIS 50 CHAIRMAN AND CONTROLLING SHAREHOLDER OF TLC BEATRICE INTERNATIONAL HOLDINGS IN NEW YORK OF A CEREBRAL HEMORRHAGE 9301200069 930120 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9301200068 930120 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EARLE M JORGENSEN CO A SUBSIDIARY OF EARLE M JORGENSEN HOLDING CO AN OFFERING OF 155 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND FIRST BOSTON CORP IMMULOGIC PHARMACEUTICAL CORP AN OFFERING OF 25 MILLION COMMON SHARES VIA MORGAN STANLEY & CO AND HAMBRECHT & QUIST INC QUEENSLAND TREASURY CORP A SHELF OFFERING OF 944 MILLION OF DEBT SECURITIES ST JOHN KNITS INC AN INITIAL OFFERING OF 68 MILLION COMMON SHARES VIA PRUDENTIAL SECURITIES INC AND PAINEWEBBER INC 9301200067 930120 TREASURY ISSUES STUDY ON TAXES FOR MULTINATIONALS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TREASURY CALLING SECTIONS OF THE TAX CODE THAT DEAL WITH INTERNATIONAL TRANSACTIONS EXCESSIVELY COMPLEX ISSUED A STUDY THAT EXPLORES WAYS OF SIMPLIFYING THEM ALTHOUGH THE REPORT WAS PREPARED BY THE BUSH ADMINISTRATION IT IS SURE TO ADD TO THE DEBATE ABOUT HOW TO OVERHAUL THE TAX SYSTEM THAT IS LIKELY TO HEAT UP AFTER BILL CLINTON ASSUMES THE PRESIDENCY TODAY THE STUDY CONSIDERED SEVERAL ALTERNATIVES FROM EXEMPTING FOREIGNSOURCE INCOME FROM US TAXES TO TAXING SUCH INCOME WHILE IT'S STILL OFFSHORE OBVIOUSLY THE TREASURY WAS LOOKING AHEAD TO WHAT THE NEXT ADMINISTRATION MIGHT FOCUS ON SAID ROBERT GREEN VICE PRESIDENT OF TAX POLICY AT THE NATIONAL FOREIGN TRADE COUNCIL WHICH REPRESENTS BOTH US AND FOREIGNBASED MULTINATIONAL COMPANIES FOR EXAMPLE ONE OF THE OPTIONS THE REPORT EXAMINES IS TO SCRAP A PROVISION THAT ALLOWS COMPANIES TO DEFER TAXES ON INCOME EARNED ABROAD UNDER CURRENT LAW COMPANIES DON'T HAVE TO PAY TAXES ON FOREIGNSOURCE INCOME UNTIL IT IS REPATRIATED TYPICALLY IN THE FORM OF DIVIDENDS WHILE NOT EXPLICITLY OPPOSING THIS APPROACH THE REPORT CAUTIONED THAT IT WOULD REPRESENT A SIGNIFICANT DEPARTURE BOTH FROM EXISTING LAW AND INTERNATIONAL NORMS AND SO ANY SIMPLIFICATION THAT IT ACHIEVES SHOULD BE SUBSTANTIAL TO JUSTIFY ADOPTION OF THIS STRUCTURE MANY COMPANIES FEAR THAT MR CLINTON IS CONSIDERING TRYING TO REPEAL THE DEFERRAL AN IDEA THAT HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI D ILL ALSO ENTERTAINED LAST YEAR AS PART OF A BROADER BILL DURING THE ELECTION CAMPAIGN MR CLINTON SPOKE OF THE NEED TO END INCENTIVES FOR OPENING PLANTS OVERSEAS AND SUGGESTED HE COULD RAISE HUNDREDS OF MILLIONS OF DOLLARS IN THE PROCESS THE ONLY THING THAT HE LOGICALLY COULD HAVE MEANT IS THAT HE WAS GOING TO GO AFTER DEFERRAL SAID BRUCE REYNOLDS OF THE ACCOUNTING FIRM DELOITTE & TOUCHE WHICH HAS FORMED ONE OF SEVERAL CORPORATE COALITIONS IN WASHINGTON THAT IS GEARING UP TO FIGHT SUCH A MOVE THE TREASURY STUDY DOESN'T MAKE ANY SPECIFIC RECOMMENDATIONS OUT OF DEFERENCE TO THE NEW ADMINISTRATION MOREOVER DEPARTMENT OFFICIALS SAY THEY HAVEN'T YET COMPLETED THEIR RESEARCH IN THIS AREA CALLING THE NEW REPORT INTERIM WHAT WE'RE REALLY TRYING TO DO IS STEP BACK AND ASK BASIC QUESTIONS WHAT GOALS ARE WE TRYING TO ACCOMPLISH WITH OUR INTERNATIONAL TAX SYSTEM AND HOW DOES THE PRESENT SYSTEM MEASURE UP TO THOSE OBJECTIVES SAID ALAN WILENSKY THE TREASURY'S ACTING ASSISTANT SECRETARY FOR TAX POLICY BESIDES THE DISCUSSION OF TAXING FOREIGNSOURCE INCOME IMMEDIATELY OR EXEMPTING SUCH INCOME FROM TAXATION ALTOGETHER THE REPORT ALSO LOOKS AT CHANGES THAT COULD BE ACCOMPLISHED UNDER EXISTING LAW FOR EXAMPLE IT NOTES THAT 75 OF ALL FOREIGNSOURCE INCOME FALLS WITHIN JUST ONE OF THE CATEGORIES THAT COMPANIES USE TO CALCULATE FOREIGNTAX CREDITS MAJOR COMPLICATIONS ARISE FROM TRYING TO TRACK THE 25 OF INCOME IN THE OTHER EIGHT CATEGORIES AND THE STUDY QUESTIONS WHETHER THE TRADEOFF IS WORTH IT THE 58PAGE REPORT THE MOST SWEEPING OF SEVERAL INTERNATIONAL STUDIES ISSUED BY THE TREASURY IN THE PAST FEW DAYSDIDN'T ADDRESS THE REVENUE CONSEQUENCES OF THE OPTIONS IT OUTLINED SOME HAVE THE POTENTIAL TO RAISE REVENUE THE REPORT SAID WHILE OTHERS COULD ENTAIL SIGNIFICANT REVENUE COSTS 9301200066 930119 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9301200065 930120 ABREAST OF THE MARKET INDUSTRIALS DROP 1892 ON SURGE OF SELL PROGRAMS IBM'S REPORT BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SKIDDED AS A LATE SURGE OF COMPUTERGUIDED SELL PROGRAMS JARRED A MARKET THAT WAS ALREADY WOBBLY AFTER IBM ANNOUNCED A BIG FOURTHQUARTER LOSS EVEN THOUGH ADVANCING ISSUES OUTPACED DECLINERS 979 TO 877 THE DOW JONES INDUSTRIAL AVERAGE SLID 1892 POINTS TO 325599 THE WIDELY WATCHED BAROMETER WAS DRAGGED DOWN BY INTERNATIONAL BUSINESS MACHINES AND A HANDFUL OF CONSUMER NONDURABLE GROWTH STOCKS STANDARD & POOR'S 500 STOCKINDEX SLUMPED 171 POINTS TO 43513 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 067 TO 23966 THE MARKET'S BRIGHT SPOT WAS BANK STOCKS LED BY A 15 JUMP IN WELLS FARGO VOLUME WAS HEAVY AS 283110000 SHARES CHANGED HANDS UP SHARPLY FROM MONDAY'S MUTED PACE OF 195980000 WHAT YOU ARE SEEING IS THAT IBM IS CARRYING THIS MARKET AGAIN SAID JAMES ANDREWS HEAD OF INSTITUTIONAL TRADING AT JANNEY MONTGOMERY SCOTT IN PHILADELPHIA HIGHER BOND PRICES WHICH GENERALLY BODE WELL FOR THE STOCK MARKET WEREN'T THE DRIVING FORCE YESTERDAY IBM WAS STOCKS FELL MORE THAN 20 POINTS INITIALLY AS THE COMPUTER MAKER ANNOUNCED IT HAD A LOSS OF 55 BILLION OR 957 A SHARE IN THE FOURTH QUARTER WIDENED FROM A YEAREARLIER LOSS OF 15 BILLION OR 255 A SHARE THE LATEST QUARTER'S RESULTS INCLUDED PRETAX CHARGES OF 72 BILLION FOR CAPACITY AND WORK FORCE REDUCTIONS THE 1991 QUARTER HAD SIMILAR PRETAX CHARGES OF 34 BILLION IBM FELL MORE THAN TWO POINTS BUT BOTH IT AND THE MARKET RECOVERED BY MIDDAY BUT ANOTHER BOUT OF SELLING DEVELOPED IN LATE AFTERNOON AND IBM FELL 1 1/8 TO CLOSE AT 48 3/8 SOME DRUG AND CONSUMER NONDURABLE STOCKS WERE HIT TOO BRISTOLMYERS SQUIBB DROPPED 1 TO 61 1/2 SCHERINGPLOUGH FELL 1 1/2 TO 56 3/8 AND PHILIP MORRIS DECLINED 1 TO 70 5/8 BUT BANK STOCKS FARED WELL THE BIGGEST GAINER WAS WELLS FARGO WHICH ROCKETED 13 POINTS TO 99 THE CALIFORNIA BANK REPORTED FOURTHQUARTER NET INCOME OF 58 MILLION OR 83 CENTS A SHARE COMPARED WITH A YEARBEFORE LOSS OF 231 MILLION OR 459 A SHARE MORE IMPORTANT THE BANK NOTED THAT THE FACE VALUE OF ITS PROBLEM LOANS FELL 10 IN THE FOURTH QUARTER THE NEWS TURNED OUT TO BE BONANZA TO INVESTOR WARREN BUFFETT WHO HAS BEEN UNABASHEDLY BULLISH ON WELLS FARGO AND HAS BEEN LOADING UP ON ITS SHARES AS RECENTLY AS LATE DECEMBER MR BUFFETT INDIRECTLY BOUGHT 66800 SHARES OF WELLS FARGO AT PRICES RANGING FROM 7446 TO 7543 THE PURCHASES BROUGHT MR BUFFETT'S OWNERSHIP IN WELLS FARGO TO MORE THAN SIX MILLION SHARES OR AN 11 STAKE ACCORDING TO FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION BUT THE PROFIT NEWS WASN'T SO GOOD FOR A NUMBER OF SHORT SELLERS WHO HAVE BEEN SELLING BORROWED SHARES OF WELLS FARGO IN A BET THAT THE STOCK BECAME OVERPRICED IN ITS RECENT RALLY THEY HOPED THEY COULD REPLACE THE BORROWED SHARES AT CHEAPER PRICES A LOT OF SHORTS THREW IN THE TOWEL YESTERDAY SAID MICHAEL MURPHY EDITOR OF THE OVERPRICED STOCK SERVICE A NEWSLETTER BASED IN HALF MOON BAY CALIF YESTERDAY'S JUMP IN WELLS FARGO WAS BY ITSELF BIG ENOUGH TO SOCK SHORT SELLERS WITH LOSSES OF ABOUT 50 MILLION MR MURPHY ESTIMATED ONE SHORT SELLER WHO IS HANGING TOUGH IS CHARLES BIDERMAN AUTHOR OF MARKET TRIM TABS SANTA ROSA CALIF THE ONLY PICKUP IN CALIFORNIA REAL ESTATE I SEE IS IN THE PERCEPTION OF WALL STREET INVESTORS SAYS MR BIDERMAN HE IS DEBATING WHETHER TO SELL SHORT MORE WELLS FARGO STOCK NOW OR WAIT UNTIL PRICES RISE FURTHER BEFORE ADDING TO HIS SHORT POSITION A NUMBER OF OTHER BANK STOCKS BENEFITED FROM THE WELLS FARGO EUPHORIA YESTERDAY BANKAMERICA JUMPED 3 7/8 TO 53 3/8 AFTER GAINING MORE THAN TWO POINTS MONDAY FIRST INTERSTATE SURGED 2 1/8 TO 52 AND CITICORP ADDED 7/8 TO 24 1/2 EARNINGS REPORTS STEERED MANY OTHER STOCKS PAINEWEBBER SLID 1 1/2 TO 25 THE BROKERAGE FIRM REPORTED FOURTHQUARTER NET INCOME OF 73 CENTS A SHARE DOWN FROM 77 CENTS A YEAR EARLIER BORDEN CHEMICALS LOST 1 1/4 TO 14 5/8 IT SAID FOURTHQUARTER PROFIT SLIPPED TO 787000 OR TWO CENTS A SHARE FROM 11 MILLION OR 30 CENTS A SHARE A YEAR BEFORE MA HANNA DROPPED 1 1/2 TO 26 1/2 THE SPECIALTY CHEMICALS COMPANY SAID IT HAS AGREED TO BUY THE ENGINEERED MATERIALS UNIT OF COOKSON AMERICA TERMS WEREN'T DISCLOSED HAEMONETICS ADVANCED 1 1/2 TO 27 3/8 IT SAID FISCAL THIRDQUARTER PROFIT JUMPED 43 TO 66 MILLION OR 23 CENTS A SHARE FROM 46 MILLION OR 16 CENTS A SHARE THE MAKER OF BLOODPROCESSING SYSTEMS SAID THE PERSHARE EARNINGS REFLECT A 2FOR1 STOCK SPLIT EFFECTIVE DEC 28 AMERICAN HOME PRODUCTS TUMBLED 3 TO 63 THE HEALTH PRODUCTS CONCERN REPORTED FOURTHQUARTER NET INCOME EASED TO 3615 MILLION OR 116 A SHARE FROM 3726 MILLION OR 118 A SHARE A YEAR AGO KELLOGG DECLINED 1 5/8 TO 61 3/8 THE CEREAL MAKER'S FOURTHQUARTER PROFIT EASED TO 142 BILLION OR 54 CENTS A SHARE FROM 145 BILLION OR 49 CENTS A SHARE A YEAR BEFORE THE LATEST QUARTER'S EARNINGS INCLUDE A CHARGE OF 46 MILLION FOR ADOPTION OF A NEW ACCOUNTING RULE CATALINA MARKETING BOUNCED UP 1 5/8 TO 40 1/8 THE ELECTRONIC MARKETING SERVICES PROVIDER REPORTED THAT ITS FISCAL THIRDQUARTER NET INCOME SWELLED TO 25 MILLION OR 25 CENTS A SHARE FROM 12 MILLION OR 14 CENTS A SHARE A YEAR AGO EARNINGS IN THE LATEST QUARTER REFLECT A CHARGE OF 13 MILLION OR SEVEN CENTS A SHARE FOR RELOCATION EXPENSES KELLOGG CO EARNED IN THE FOURTH QUARTER 1279 MILLION OR 54 CENTS A SHARE COMPARED WITH 1182 MILLION OR 49 CENTS A SHARE A YEAR EARLIER IN YESTERDAY'S ABREAST OF THE MARKET COLUMN IT WAS INCORRECTLY STATED THAT KELLOGG EARNED 142 BILLION FOR THE QUARTER COMPARED WITH 145 BILLION A YEAR EARLIER 9301200064 930120 CRISIS CAPITALISTS COWED BY SADDAM ORDINARY IRAQIS HONE THEIR SURVIVAL SKILLS THEY BECOME ENTREPRENEURS AND TRADERS TO EASE TOLL EXACTED BY THE EMBARGO UNEMPLOYMENT AND INFLATION BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL BAGHDAD AMID THE PAIN AND HARDSHIPS OF THE WESTERN TRADE EMBARGO AGAINST IRAQ SOME RESIDENTS OF THIS CITY HAVE DISCOVERED THE JOY OF SELFSUFFICIENCY THEIR CITY MOST OF WHICH BEFORE THE GULF WAR HAD BEEN BUILT BY FOREIGN TECHNICIANS NOW BOASTS A NUMBER OF GLEAMING NEW BRIDGES FACTORIES AND ROADS THE FRUITS OF THE IRAQI PEOPLE'S RECONSTRUCTION EFFORT SATISFACTION IN THIS WORK EXTENDS EVEN TO IRAQIS HIGHLY CRITICAL OF SADDAM HUSSEIN SOME OF WHOM FEEL A SNEAKING SENSE OF PRIDE WHEN HE CROWS ABOUT HAVING STOOD UP TO THE AGGRESSION OF 30 NATIONS I DON'T LIKE TO ADMIT IT BUT IT'S TRUE SAYS A WESTERNEDUCATED PROPRIETOR OF AN ANTIQUE STORE I'M PROUD OF HOW IRAQIS HAVE REBUILT OUR COUNTRY SO QUICKLY WITH NO HELP FROM ANYONE ALTHOUGH ECONOMIC SANCTIONS HAVE LED TO RUNAWAY INFLATION AND WIDESCALE UNEMPLOYMENT PUNISHING MORE IRAQIS THAN DID US AIR STRIKES THE HARD TIMES HAVE ALSO UNLEASHED A NEW BREED OF IRAQI ENTREPRENEUR AT A SMALL BACKALLEY COMPUTER SHOP AN ENGINEER FOR IRAQ'S STATEOWNED OIL INDUSTRY BURSTS THROUGH THE DOOR LOOKING FOR A USER'S MANUAL FOR MICROSOFT'S WINDOWS COMPUTER SOFTWARE THE SHOP OWNERS A PAIR OF NIMBLE WAR MILLIONAIRES IN DINARS IN THEIR LATE20S WON'T PART WITH THEIR ENGLISH COPY FOR LESS THAN 500 DINARS A STAGGERING 15 AT BLACK MARKET RATES THE CUSTOMER A FRIEND OF THE OWNERS BERATES THE PROFITEERS BUT THEY DON'T BUDGE HE PAYS THEM HOPING TO GET REIMBURSED BY THE OIL COMPANY WHICH GIVES SPECIAL FRIENDS OF THE PRESIDENT MEDALS WITH CASH BONUSES TO WORKERS WHO BEAT DEADLINES FOR RECONSTRUCTION WORK FOREIGNERS WON'T EVEN SEND US TECHNICAL MANUALS FOR EQUIPMENT THEY MADE MILLIONS OF DOLLARS INSTALLING HERE SAYS THE OIL ENGINEER A JUMPY FELLOW IN A GRAY SUIT HE HAS SPENT THE PAST TWO YEARS HE SAYS WORKING 16HOUR DAYS REDESIGNING A HUGE DEGASSING PLANT USED IN THE OIL INDUSTRY THAT WAS LEVELED IN THE WAR IT'S AMAZING WHAT WE'VE DONE ON OUR OWN HE BEAMS THE PHONE DOESN'T STOP RINGING AT THE COMPUTER SHOP ONE CALLER IS WILLING TO PAY ALMOST ANYTHING FOR AN APPLE MACINTOSH DISK DRIVE ANOTHER NEEDS PARTS FOR HIS PRINTER THE SHOP BUYS COMPONENTS AND COMPUTERS THROUGH DEALERS IN KUWAIT OR JORDAN WHO SMUGGLE THEM INTO IRAQ THERE'S NOTHING WE CAN'T GET FOR A PRICE SAYS ONE SHOP OWNER THE YOUNG ENTREPRENEURS RECENTLY BRANCHED OUT INTO CARS A 1989 FOURDOOR CHEVROLET CELEBRITY BOUGHT FOR 170000 IRAQI DINARS 5000 THREE MONTHS AGO IS WORTH 20 MORE TODAY THE BAGHDAD HUSTLE IS ALSO IN FULL MOTION AT THE CITY'S NEW STOCK EXCHANGE OPENED IN MARCH AS PART OF THE REGIME'S PRIVATIZATION PUSH WITH A TRADING SYSTEM DESIGNED ENTIRELY FROM BOOKS PURCHASED IN JORDAN THE EXCHANGE WHICH TRADES TWO DAYS A WEEK LISTS SHARES OF 64 GOVERNMENTCONTROLLED COMPANIES IN A CORNER OF THE SMALL TRADING FLOOR THE EXCHANGE'S COMPUTER STAFF BOTH OF THEM FIDDLE WITH A PAIR OF 12YEAROLD GIANTSCREEN TELEVISION SETS EACH THE SIZE OF A PLAYER PIANO THE PLAN IS TO AUTOMATE TRADING ON A HALFDOZEN PERSONAL COMPUTERS WHICH WILL BE LINKED TO THE GIANT TV SETS TO DISPLAY SHARE PRICES EVENTUALLY THE STAFF ENVISIONS THAT BAGHDAD STOCK BROKERS WILL ACQUIRE THEIR OWN PCS SO THEY CAN TRADE BY COMPUTER OVER THE PHONE MEANWHILE THE TECHNICIANS WOULD ALSO LIKE TO DEVELOP AN INDEX OF SHARE PRICES TO REFLECT THE BAGHDAD MARKET'S PERFORMANCE WHAT IS THIS THING DOW JONES INDUSTRIAL AVERAGE' ONE ASKS THE SURGE OF CRISIS CAPITALISM IN BAGHDAD HOWEVER MASKS A STEEP DECLINE IN MOST IRAQIS' STANDARD OF LIVING ESPECIALLY OUTSIDE THE CAPITAL DURING THE CURRENT TENSIONS IRAQ'S INFORMATION MINISTRY HAS REFUSED TO ALLOW FOREIGN JOURNALISTS TO TRAVEL OUTSIDE BAGHDAD EXCEPT IN TIGHTLY SCHEDULED VISITS TO THE SOUTH TO SEE VICTIMS OF RECENT COALITION ATTACKS ALONG THE 300MILE ROAD SOUTH TO BASRA WHICH CUTS THROUGH THE HEART OF IRAQ'S MAJORITY SHIITE POPULATION THE CLEAN WIDE BOULEVARDS OF BAGHDAD QUICKLY GIVE WAY TO CORRUGATEDMETAL SLUMS CHILDREN PLAY AMID THE TRASH AT THE EDGE OF ENDLESS POOLS OF STAGNANT WATER THAT ARE TRAPPED IN THE BLEAK LOWLANDS BETWEEN THE TIGRIS AND EUPHRATES RIVERS THOUSANDS OF YEARS OF FARMING HAVE LEFT THIS PART OF THE ALLUVIAL CRESCENT ANYTHING BUT FERTILE THE SOIL IS A LIFELESS BEIGE DUST DOTTED WITH LARGE POCKETS OF WHITE SALTS SOME PEOPLE MUST WADE TO THEIR HOUSES THROUGH ANKLEDEEP BLACK WATER THE ROAD TO BASRA IS ALSO A MILITARY GARRISON A LINE OF FIRM GOVERNMENT CONTROL THROUGH AN AREA SEETHING WITH HATRED OF THE BAGHDAD REGIME THERE ARE CHECKPOINTS EVERY 30 MILES OR SO MANNED BY SEVERAL TYPES OF SOLDIERS SOME TO STOP CIVILIAN CARS AND OTHERS WHO HANDLE MILITARY VEHICLES TANKS AND PILLBOXES LINE MANY PARTS OF THE ROAD THERE ARE MORE MILITARY BASES ENCLOSED IN BARBED WIRE THAN GASOLINE STATIONS OR TEA HOUSES ACCORDING TO SEVERAL IRAQIS TO REBUILD BAGHDAD THE REGIME PLUNDERED EQUIPMENT FROM OTHER PROVINCES NOW WHILE THE PHONES ELECTRICITY AND WATER SUPPLIES WORK WELL IN THE CAPITAL SOME PARTS OF THE COUNTRY THAT WEREN'T EVEN DAMAGED IN THE WAR ARE STILL WAITING FOR SERVICES TO BE RESTORED BUT AS THE BUSH ADMINISTRATION FOUND OUT IN THE NOFLY ZONES WHAT HAPPENS IN THE OUTLYING AREAS OF IRAQ MEANS NOTHING TO SADDAM HUSSEIN'S GRIP ON POWER THE BULWARK OF HIS SUPPORT RESIDES IN THE SUNNI ISLAMIC CITIES IN THE CENTER OF THE COUNTRY WHERE THE CRAFTY PRESIDENT HAS STRENGTHENED HIS WEB OF PATRONAGE AND TERROR SINCE LOSING THE WAR FOR KUWAIT SCARCITIES AND INFLATION HAVE LOWERED ALL IRAQIS' STANDARD OF LIVING BUT THE PEOPLE WHO MATTER MOST TO THE PRESIDENT'S SURVIVAL THE OFFICERS AND MERCHANTS ARE DOING FINE MANY ARE EVEN PROSPERING AS IN MOST MIDEAST COUNTRIES THE CENTRAL BAZAAR IS THE KEY TO IRAQ'S DISTRIBUTION SYSTEM AND IN BAGHDAD THE CENTRAL BAZAAR IS BUSTLING SHELVES ARE STOCKED WITH TOMATO PASTE FROM BULGARIA PENCILS AND BATTERIES FROM CHINA SOAP FROM TURKEY AND IRAN KETCHUP FROM LEBANON AND TEA FROM SRI LANKA A GRAIN MERCHANT SAYS IRAQIS ARE BUYING A LOT OF SOYBEANS AND CHICKPEAS THESE DAYS INSTEAD OF WHEAT HE ALSO SAYS MERCHANTS DON'T DARE HOARD FOODSTUFFS TO DRIVE UP PRICES THESE DAYS NOT SINCE THE OWNER OF A NEARBY STALL WAS RECENTLY HANGED FOR HOARDING TO STIMULATE TRADE THE REGIME HAS GIVEN IRAQI TRADERS ENORMOUS SLACK CUSTOMS TARIFFS ON FOODSTUFFS HAVE BEEN ABOLISHED AS HAVE INCOME TAXES ON FOODBUSINESS PROFITS TO KEEP ITS FACTORIES RUNNING THE GOVERNMENT HAS ALSO CUT SOME NOVEL DEALS BECAUSE FEW COMPANIES OUTSIDE IRAQ WILL DEAL WITH THE HUSSEIN REGIME IT HAS ALLOWED PRIVATE MERCHANTS TO IMPORT RAW MATERIALS AT THEIR OWN EXPENSE PAY GOVERNMENT FACTORIES TO PROCESS THEM AND KEEP THE PROFITS FROM DISTRIBUTING THE FINAL PRODUCTS IN THIS WAY IRAQ HAS MAINTAINED STEADY SUPPLIES OF BEER JUICE SUGAR AND CIGARETTES AMONG OTHER GOODS IT'S A MECCA FOR BUSINESSMEN SAYS ONE TRADER WITH LUCRATIVE GOVERNMENT LINKS IN DECEMBER TO SLOW THE OUTFLOW OF HARD CURRENCY IRAQ BANNED THE SALE OF NEARLY ALL IMPORTED GOODS EXCEPT FOODSTUFFS THE ANTIQUESTORE OWNER SAYS THE MEASURE HASN'T BEEN ENFORCED SINCE THE DAY AFTER IT TOOK EFFECT WHEN INSPECTORS FANNED OUT THROUGH THE CITY TO SCARE PEOPLE HE IS CURRENTLY TESTING THE WATERS IF NOBODY ADMONISHES HIM FOR THE TURKISH WATER PIPE IN HIS WINDOW HE'LL GRADUALLY PUT MORE IMPORTS BACK ON THE SHELVES AT A CANDY STORE IN DOWNTOWN BAGHDAD THE ONLY GOODIES ON THE SHELVES ARE IRAQI DATES AND JARS OF HONEY BUT ASK FOR CHOCOLATE AN ITEM BANNED FOR IMPORT AND THE GIRL BEHIND THE COUNTER REACHES INTO A BROWN PAPER BAG AT HER FEET AND PULLS OUT A BRIGHT ORANGE TV BAR MADE IN LESOTHO PLEASE MISTER SHE SAYS RUNNING AFTER A CUSTOMER LEAVING THE STORE KEEP IT IN YOUR POCKET MANY IRAQIS AND FOREIGN DIPLOMATS WHILE SOBER ABOUT THE REALITIES OF SADDAM HUSSEIN'S REGIONAL AMBITIONS SAY THE NEW SPIRIT OF CAPITALISM IN BAGHDAD COULD CONCEIVABLY FORM THE BASIS OF AN EVENTUAL THAW IN IRAQIUS RELATIONS THERE'S ALSO HOPE THAT SADDAM HUSSEIN WHILE THUMBING HIS NOSE AT OUTGOING PRESIDENT GEORGE BUSH WILL WAVE AN OLIVE BRANCH AT INCOMING PRESIDENT CLINTON INDEED SADDAM HUSSEIN DECLARED A UNILATERAL CEASEFIRE TO TAKE EFFECT AT MIDNIGHT EASTERN STANDARD TIME LAST NIGHT INSIDERS IN IRAQ SAY PRESIDENT HUSSEIN APPEARS READY TO BAIT THE DIPLOMATIC HOOK WITH THE PROSPECT OF BILLIONS OF DOLLARS IN RECONSTRUCTION CONTRACTS FOR US COMPANIES AND ACCESS FOR US FIRMS TO THE WORLD'S SECOND LARGEST OIL RESERVES AFTER SPENDING MUCH OF ITS OIL INCOME IN THE PAST 20 YEARS ON MILITARY HARDWARE IRAQ HAS TREMENDOUS NEEDS FOR MODERNIZATION OF ITS OIL INDUSTRY AND BASIC INFRASTRUCTURE IF IRAQ WERE EVER FREE TO SELL OIL AND SPEND MONEY ON PUBLIC WORKS ITS EXPENDITURES WOULD AMOUNT TO MANY TIMES WHAT KUWAIT SPENT AFTER THE WAR MOREOVER PRESIDENT HUSSEIN HAS ALREADY HINTED THAT HE WOULD HAPPILY SELL OIL TO THE US WE CAN'T DRINK IT WAS HOW HE PUT IT IN A REMARK MADE SINCE THE GULF WAR ONE IRAQI BUSINESSMAN SAYS HE WAS ASKED BY FRIENDS IN IRAQ'S OIL MINISTRY TO PROBE AMERICAN OIL COMPANIES ABOUT FUTURE WORK IN IRAQ IN ANY RAPPROCHEMENT THE BETTING HERE IS THAT IRAQ WOULD USE COMMERCIAL CONTRACTS AS BARGAINING LEVERAGE WITH THE US AND OTHERS TO TRY TO REDUCE THE 250 BILLION TO 300 BILLION IT IS ESTIMATED TO OWE IN DEBT AND WAR REPARATIONS BASED ON IRAQ'S OIL REVENUE OF ROUGHLY 15 BILLION IN 1989 IT WOULD TAKE THE COUNTRY MORE THAN A GENERATION TO PAY OFF THE FULL AMOUNT SAYS AN EASTERN EUROPEAN DIPLOMAT WITH MANY YEARS' EXPERIENCE IN IRAQ THEY KNOW THEY HAVE TO PAY BUT THEY'D MUCH RATHER PAY THE AMERICANS IN COMMERCIAL CONTRACTS THAN IRAN AND KUWAIT 9301200063 930120 BUSINESS BRIEF UJB FINANCIAL CORP NET FOR 4THQUARTER DOUBLED HELPED BY DROP IN BAD LOANS UJB FINANCIAL CORP SAID THAT FOURTHQUARTER NET INCOME DOUBLED REFLECTING A DECLINE IN NONPERFORMING LOANS AND REAL ESTATERELATED LENDING NET INCOME ROSE TO 177 MILLION OR 35 CENTS A SHARE FROM 88 MILLION OR 18 CENTS A SHARE A YEAR EARLIER THE PROVISION FOR LOAN LOSSES DECLINED TO 26 MILLION FROM 31 MILLION AND THE TOTAL ALLOWANCE FOR LOAN LOSSES DECREASED TO 2753 MILLION FROM 2888 MILLION AS A PERCENTAGE OF TOTAL LOANS THE ALLOWANCE FOR LOSSES FELL TO 31 FROM 33 TOTAL AMOUNT OF NONPERFORMING LOANS AND REAL ESTATERELATED LENDING DECLINED 481 MILLION DURING THE QUARTER THE PRINCETON NJ BANK SAID UJB HAS 259 OFFICES IN NEW JERSEY AND EASTERN PENNSYLVANIA 9301200062 930120 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN UKRAINE'S THREEMONTHOLD GOVERNMENT MOVING TO BREAK THE STATE'S INDUSTRIAL MONOPOLY ALLOWED THE FIRST STEP TOWARD PRIVATIZING LARGE ENTERPRISES THE MOVE PERMITS CREATION BY JULY 1 OF STOCK COMPANIES FROM STATERUN ENTERPRISES EVENTUALLY EXPECTED TO NUMBER IN THE THOUSANDS INITIALLY THE STATE PRIVATIZATION AGENCY WILL BE THE PRINCIPAL SHAREHOLDER WORKERS WILL BE GIVEN CERTIFICATES TO INVEST IN THEIR OWN FACTORIES REMAINING STAKES WILL BE SOLD AT AUCTION FOREIGNERS WILL BE ALLOWED TO PARTICIPATE THE PROGRAM MAY BE UNPOPULAR ESPECIALLY AMONG FACTORY MANAGERS WHOSE COVETED POSITIONS PAY FAT SALARIES PRIVATIZATION WON'T BE ALLOWED AT ENTERPRISES CONSIDERED MONOPOLIES SUCH AS IN TRANSPORTATION AND NATURAL RESOURCES UKRAINE ALSO AUTHORIZED AN EXPERIMENT TO PRIVATIZE IN STAGES OVER THREE YEARS THE ORIZON FACTORY IN THE CHERKASSY REGION WHERE 20000 EMPLOYEES ARE EXPECTED TO MORE THAN DOUBLE THEIR OUTPUT OF TELEVISION SETS MEDICAL EQUIPMENT AND RADIOS JAPAN WILL LIFT CONTROLS ON IMPORTS OF 53 FRUITS AND VEGETABLES FROM 24 COUNTRIES JAPAN HAD IMPOSED BANS ON MOST FRUIT AND VEGETABLE IMPORTS FOR HEALTH REASONS SOCALLED NONTARIFF BARRIERS CRITICIZED BY THE COUNTRY'S TRADING PARTNERS JAPANESE NEWS REPORTS SAID THE GOVERNMENT WOULD LIFT THE BANS GRADUALLY STARTING IN THE SPRING INITIALLY ALLOWING TOMATOES AND SWEET PEPPERS FROM THE NETHERLANDS AND MANGOES FROM THAILAND THEN APPLES FROM THE US AUSTRALIA NEW ZEALAND AND CANADA TURKISH GRAPEFRUITS AND LEMONS ITALIAN ORANGES AND TAIWAN SQUASH FOREIGNOWNED RETAILERS IN SOUTH KOREA MAY EXPAND THE NUMBER AND SIZE OF THEIR SHOPS IN THE THIRD PHASE OF THE PROGRAM BEGUN IN 1988 TO OPEN UP THE COUNTRY'S DISTRIBUTION SYSTEM UNDER THE CHANGES EXPECTED TO TAKE EFFECT IN JULY THESE RETAILERS MAY DOUBLE TO 20 THEIR BRANCHES NATIONWIDE AND TRIPLE THEIR STORES' FLOOR SPACE THE GOVERNMENT PLANS TO LIFT ALL RESTRICTIONS ON FOREIGNERS' DISTRIBUTION OF GOODS BY 1996 PRESIDENT BORIS YELTSIN SAYING CRIME IN RUSSIA POSES A BIGGER THREAT TO STABILITY THAN POLITICAL CONFLICT LAUNCHED A CAMPAIGN AGAINST CRIME AND CORRUPTION CRIME INCLUDING VIOLENT OFFENSES HAS FLOURISHED IN RUSSIA SINCE THE COLLAPSE OF SOVIET ECONOMIC AND POWER STRUCTURES AND AMID CONFUSION ABOUT BUSINESS REGULATIONS WEAPONS ABOUND IN MAJOR CITIES PARTICULAR TARGETS ARE NEW PRIVATE BUSINESSES BOTH DOMESTIC AND FOREIGNBACKED WITH LEGISLATION VAGUE AND BRIBES OF STATE OFFICIALS SOMETIMES UNAVOIDABLE THE DIVIDING LINE BETWEEN LEGAL AND ILLEGAL ACTIONS IS OFTEN UNCLEAR THE EUROPEAN COMMUNITY'S NEW TRADE COMMISSIONER LEON BRITTAN SAID HE WAS PRESSING TO MEET HIS NEW US COUNTERPART MICKEY KANTOR AS SOON AS POSSIBLE AND WARNED AGAINST FURTHER DELAYS IN REACHING A LIBERALIZATION ACCORD UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR BRITTAN SAID A GATT AGREEMENT COULD BE REACHED BEFORE THE US FASTTRACK NEGOTIATING MANDATE EXPIRES MARCH 2 BUT INSISTED HE WASN'T SETTING A DEADLINE HIS COMMENTS WERE AIMED AT PRESSURING THE NEW US ADMINISTRATION TO MAKE CONCESSIONS NEEDED FOR AN AGREEMENT EC OFFICIALS FEAR US INDUSTRY WILL LOBBY INTENSELY AGAINST ANY MORE CONCESSIONS MR BRITTAN ALSO POURED COLD WATER ON FRANCE'S HOPES THAT THE ECUS AGRICULTURE ACCORD COULD BE RENEGOTIATED CHINA'S REVENUE FROM TAXES ON INDUSTRIAL AND COMMERCIAL ENTERPRISES ROSE 11 LAST YEAR TO 2601 BILLION YUAN 4454 BILLION FROM A YEAR EARLIER TAXES FROM JOINT VENTURES AND FOREIGNFUNDED FIRMS SURGED 53 TO 107 BILLION YUAN THE CZECH REPUBLIC AND SLOVAKIA BECAME UNITED NATION MEMBERS 19 DAYS AFTER CZECHOSLOVAKIA ENDED ITS 74YEAR EXISTENCE AND DIVIDED INTO TWO INDEPENDENT NATIONS THE UN NOW HAS 180 MEMBERS 9301200061 930120 BUSINESS BRIEF CORNING INC LAB SERVICES UNIT TO ACQUIRE THREE FACILITIES FROM UNILAB CORNING INC SAID ITS CORNING LAB SERVICES INC UNIT AGREED TO ACQUIRE THREE US CLINICAL TESTING LABORATORIES FROM UNILAB CORP UNDER THE AGREEMENT THE CORNING NY COMPANY WILL TAKE OVER UNILAB FACILITIES IN DENVER DALLAS AND PHOENIX THE FACILITIES HAVE ANNUAL REVENUE OF ABOUT 85 MILLION THE AGREEMENT IS SUBJECT TO CERTAIN APPROVALS INCLUDING THAT OF UNILAB SHAREHOLDERS UNAFFILIATED WITH CORNING AND TO THE AVERAGE CLOSING PRICE OF UNILAB NOT EXCEEDING 850 A SHARE OR FALLING BELOW 450 A SHARE UNILAB SHARES WERE UNCHANGED AT 6375 IN OVERTHECOUNTER TRADING YESTERDAY BOTH UNILAB AND CORNING LAB SERVICES PROVIDE CLINICAL LABORATORY TESTING SERVICES 9301200060 930120 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JANUARY 6 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9301200059 930120 WORLD MARKETS TOKYO SHARES GAIN 11 IN TECHNICAL DEALINGS PRICES FALL IN LONDON RISE AGAIN IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES CLIMBED 11 TUESDAY IN TECHNICAL FUTURESLED DEALINGS LONDON EQUITIES FELL SHARPLY AND ENDED NEAR THE DAY'S LOWS FRANKFURT SHARES ROSE BROADLY FOR THE FOURTH SESSION IN A ROW IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ROSE 10164 POINTS MONDAY PICKED UP 18140 TO 1679864 JUST 010 POINT OFF THE INTRADAY HIGH ON WEDNESDAY THE NIKKEI INDEX FELL 6472 POINTS TO CLOSE THE MORNING SESSION AT 1673392 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH SLIPPED 084 POINT MONDAY GAINED 900 TO 127607 WHILE SENTIMENT HADN'T TURNED BULLISH IT DID IMPROVE SLIGHTLY AS SOME INDIVIDUALS PARTICULARLY FOREIGNERS RETURNED TO THE MARKET TO BUY SPECULATIVE ISSUES INVESTORS' MOOD WAS BOLSTERED BY RECENT SUPPORT FOR THE NIKKEI AT THE 16500 LEVEL TUESDAY'S GAINS WERE LARGELY TECHNICALLY DRIVEN AS THE NIKKEI FOLLOWED FUTURES CONTRACTS IN OSAKA AND SINGAPORE HIGHER AT LEAST 5 OF THE DAY'S VOLUME REPRESENTED CROSS TRANSACTIONS IN WHICH LARGE SHAREHOLDERS PLACE SIMULTANEOUS SELL AND BUY ORDERS THROUGH THE SAME BROKER ALLOWING THE HOLDERS TO BOOK UNREALIZED GAINS ON SHARES AND THEN BUY THEM BACK OFTEN AT THE SALE PRICE TOKYO INVESTORS DIDN'T REACT TO COMMENTS BY GOVERNMENT OFFICIALS INCLUDING REMARKS BY PRIME MINISTER KIICHI MIYAZAWA THAT THE JAPANESE ECONOMY MUST BE EXPECTED TO REMAIN STAGNANT FOR A FAIRLY LONG TIME ANALYSTS SAID RECENT WEAK ECONOMIC DATA SUGGEST THE BANK OF JAPAN COULD CUT ITS OFFICIAL DISCOUNT RATE SOON GOLD SHARES GAINED ON FINANCE MINISTER YOSHIRO HAYASHI'S REPORTED REMARK THAT THE GOVERNMENT MAY MAKE GOLD COINS TO COMMEMORATE A JAPANESE ROYAL WEDDING LATER THIS YEAR IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SANK 255 POINTS TO 27376 NEAR THE SESSION'S BOTTOM OF 27359 THE FT 30STOCK INDEX LOST 159 POINTS TO 21247 VOLUME WAS 557 MILLION SHARES COMPARED WITH 488 MILLION SHARES A DAY EARLIER SEVERAL FACTORS COMBINED TO SHAKE INVESTOR CONFIDENCE IN LONDON AN INDUSTRY SURVEY SHOWING THAT DECEMBER RETAIL SALES IN BRITAIN FELL FROM A YEAR EARLIER DISPUTED ANECDOTAL EVIDENCE THAT CHRISTMAS SHOPPING HAD PRODUCED SIGNIFICANTLY HIGHER 1992 RETAIL SALES INSTITUTIONS STEPPED BACK ON TALK OF HUGE STOCK RIGHTS ISSUES THIS YEAR AND NEWS THAT GERMANY PLANS NEW TAX MEASURES TO HELP PAY FOR GERMAN RECONSTRUCTION PROJECTS DEALT A BLOW TO HOPES FOR A CUT IN GERMAN INTEREST RATES LONDON INVESTORS PERCEIVED GERMANY'S NEED FOR EXTRA FINANCES AS LIMITING THAT COUNTRY'S ABILITY TO EASE MONETARY POLICY AND THIS SENT LONDON STOCKS TO SESSION LOWS PARTLY BECAUSE OF INITIAL CONFUSION THAT THE GERMAN TAX COULD HURT COMPANIES THAT EXPORT TO GERMANY THIS IN TURN CAUSED THE FUTURES MARKET TO TUMBLE AND SPARKED A SERIES OF AUTOMATED SELL PROGRAMS IN THE STOCK MARKET THE GERMAN FINANCE MINISTRY LATER EXPLAINED THAT THE TAX MEASURE PROPOSES TO LEVY GERMAN INVESTORS' INCOME FROM FOREIGN MUTUAL FUNDS AT A RATE OF 30 IN FRANKFURT THE DAX 30STOCK INDEX ROSE 570 POINTS TO 157883 A HIGH FOR THIS YEAR THE AVERAGE HAS GAINED 6233 POINTS SINCE THE RALLY BEGAN LAST THURSDAY AS EXPECTATIONS FOR LOWER INTEREST RATES OUTWEIGHED POOR CORPORATE EARNINGS REPORTS INVESTORS WERE AIMING TO BREAK 1600 ON THE DAX EVEN THOUGH THE MARKET ACKNOWLEDGED THAT GERMAN INTEREST RATES AREN'T LIKELY TO BE REDUCED THIS WEEK INFLATION REMAINS HIGH WAGE SETTLEMENTS HAVEN'T BEEN ANNOUNCED AND FINANCING FOR EASTERN GERMAN RECONSTRUCTION HASN'T BEEN AGREED TO YET STILL THE MARKET CONTINUED TO BET ON A LENDINGRATE CUT IN TWO WEEKS PARIS SHARES RECOVERED FROM EARLY WEAKNESS TO END MIXED A PERFORMANCE THAT CHARACTERIZED MOST BIG EUROPEAN EXCHANGES BUT MADRID SHARES SLID ON PROFITTAKING AFTER A FOURSESSION RALLY AS THE MARKET TOOK A BREATHER AND PROFITTAKING DEPRESSED PRICES IN ZURICH SYDNEY STOCKS DRIFTED DOWN AFTER THREE SESSIONS OF GAINS SINGAPORE PRICES TRIPPED IN AFTERNOON DEALINGS AS A LACK OF BUYING SUPPORT TOOK A GENERALLY WEAK MARKET DOWN HONG KONG EQUITIES ADVANCED SLIGHTLY IN LISTLESS DIRECTIONLESS TRADING AS PROFITTAKING WAS OVERCOME BY BARGAINHUNTING IN TAIPEI'S LAST SESSION BEFORE A LONG CHINESE NEW YEAR HOLIDAY PRICES POSTED BIG GAINS IN HECTIC TRADING ON NEWS THAT TAIWAN PREMIER HAU PEITSUN AGREED TO RESIGN WHICH EASED INVESTORS' ANXIETY ABOUT POLITICAL INSTABILITY SEOUL STOCKS ROSE ON OPTIMISM FOR A BETTER MARKET FOLLOWING THE MARKET'S LUNAR NEW YEAR'S HOLIDAY THAT STARTS FRIDAY AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH AEROSPACE CLIMBED 9 PENCE OR 49 TO 194 PENCE 297 THE BRITISH COMPANY AND TAIWAN AEROSPACE SIGNED AGREEMENTS FOR A JOINT VENTURE IN REGIONAL JET AIRCRAFT IN FRANKFURT THYSSEN SLUMPED 3 MARKS OR 17 TO 16970 MARKS 10386 THE INDUSTRIAL COMPANY'S THYSSEN EDELSTAHLWERKE SPECIALTY STEEL AND THYSSEN STAHL BASIC STEEL DIVISIONS POSTED SHARP DROPS IN PROFIT AND THYSSEN SAID IT WOULD CUT ABOUT 8000 JOBS OVER THE NEXT TWO YEARS INCLUDING 3800 THIS YEAR VOLKSWAGEN SKIDDED 55 OR 2 TO 27050 EVEN THOUGH THE AUTO MAKER SAID IT SOLD A RECORD 2365000 UNITS IN EUROPE LAST YEAR UP 68 FROM A YEAR EARLIER ITS MARKET SHARE MEASURED BY CAR REGISTRATIONS ROSE TO 175 FROM 164 MARKING THE EIGHTH CONSECUTIVE YEAR IN WHICH VW WAS THE LEADING EUROPEAN CAR COMPANY IN HONG KONG CATHAY PACIFIC AIRWAYS ROSE 15 CENTS TO 940 HONG KONG DOLLARS US121 AND ITS PARENT SWIRE PACIFIC'S CLASS A SHARES FELL 75 CENTS TO HK3025 WITH THE REGION'S PEAK HOLIDAY SEASON APPROACHING AS THE AIRLINE IS ENTWINED IN A STRIKE BY ITS CABINCREW EMPLOYEES CATHAY ACKNOWLEDGED THAT THE WALKOUT COULD CAUSE LOSSES OF AS MUCH AS HK15 MILLION US19 MILLION A DAY HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9301200058 930120 BUSINESS BRIEF CONNER PERIPHERALS INC FOURTHQUARTER NET FELL 37 ON WRITEOFF FOR ACQUISITION CONNER PERIPHERALS INC SAID FOURTHQUARTER NET INCOME FELL 37 TO 85 MILLION OR 17 CENTS A SHARE REFLECTING A 357 MILLION CHARGE RELATED TO ITS ACQUISITION OF ARCHIVE CORP THAT COMPARES WITH YEAREARLIER PROFIT OF 133 MILLION OR 23 CENTS A SHARE REVENUE FOR THE QUARTER ROSE 49 TO 6205 MILLION FROM 417 MILLION FINIS CONNER CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE SAN JOSE CALIF COMPANY HAD RECORD 1992 REVENUE AND IS PROCEEDING WITH ITS CHANGE FROM BEING A SUPPLIER OF WINCHESTER DISK DRIVES TO BEING A BROADBASED SUPPLIER OF DATA STORAGE DEVICES AND STORAGE SOFTWARE CONNER SHARES FELL 625 CENTS TO 2050 ON THE NEW YORK STOCK EXCHANGE FOR THE FULL YEAR NET ROSE 30 TO 1211 MILLION OR 219 A SHARE FROM 925 MILLION OR 157 A SHARE WHILE REVENUE ROSE 40 TO 224 BILLION FROM 16 BILLION 9301200057 930120 INAUGURATION A SPECIAL REPORT THE PLAYERS CAPITOL GAINS THE FRESHMAN CLASS HEADING TO CONGRESS IS THE MOST VARIED EVER WHO ARE THESE NEWCOMERS BY DAVID ROGERS AND JOHN HARWOOD FORGET PARTY LABELS JUST LOOK AT THE FACES TO SEE WHAT'S REALLY NEW ABOUT THIS CONGRESS NOVEMBER'S ELECTION SCARCELY ALTERED THE BALANCE OF POWER BETWEEN DEMOCRATS AND REPUBLICANS BUT THE CHANGES WROUGHT IN BOTH CHAMBERS ARE HISTORIC THE HOUSE MUST ABSORB 110 NEWCOMERS THE LARGEST FRESHMAN CLASS IN MORE THAN FOUR DECADES AND EQUAL TO ABOUT A QUARTER OF ITS MEMBERSHIP THOUGH THE SENATE NUMBERS ARE SMALLER THE INFUSION OF NEW WOMEN AND MINORITY MEMBERS WILL ADD SOME DASH LYNDON JOHNSON WHO ONCE TOWERED OVER THE CAPITOL AS THE SENATE MAJORITY LEADER WOULD SMILE THE PRESIDENTIAL CAMPAIGN WAS HAUNTED BY THE BITTER MEMORIES OF VIETNAM AND THE CLASS INEQUITIES OF THE 1960S MILITARY DRAFT BUT THE NEW CONGRESS FULFILLS MR JOHNSON'S OTHER LEGACY THE 1965 VOTING RIGHTS ACT ACROSS THE SOUTH AND IN NORTHERN CITIES A NEW GENERATION OF BLACK AND HISPANIC LAWMAKERS IS COMING TO WASHINGTON AND REPRESENTS A POTENT FORCE NOT ONLY IN THE HOUSE DEMOCRATIC CAUCUS BUT ALSO ON INFLUENTIAL COMMITTEES THE FIRST DEMOCRATIC FRESHMAN TO WIN A SEAT ON THE HOUSE APPROPRIATIONS COMMITTEE WAS FLORIDA REP CARRIE MEEK THE GRANDDAUGHTER OF A GEORGIA SLAVE AND THREE BLACKS WERE ADDED TO THE POWERFUL WAYS AND MEANS COMMITTEE INCLUDING CHICAGO FRESHMAN MEL REYNOLDS AND GEORGIA REP JOHN LEWIS A HERO OF THE CIVILRIGHTS MOVEMENT WOMEN GAINED A NET OF 23 SEATS IN THE HOUSE AND SENATE AND THIS SHIFT IS ALREADY BEING FELT IN THE JOCKEYING SURROUNDING ABORTION RIGHTS THUS WHEN BLANCHE LAMBERT A SAVVY 32YEAROLD ARKANSAS FRESHMAN WENT AROUND THE HOUSE LEADERSHIP SLATE LAST MONTH TO WIN A COVETED SEAT ON THE ENERGY AND COMMERCE COMMITTEE SHE WAS HELPED BY HER STRONG ABORTIONRIGHTS STANCE AND BY THE PRESENCE OF WOMEN ALLIES ON THE DEMOCRATIC STEERING AND POLICY COMMITTEE FOR BOTH PARTIES THE RECORD RETIREMENTS AND PROMISE OF CHANGE THIS YEAR HELPED TO DRAW CANDIDATES EXPERIENCED IN PUBLIC LIFE ANTIINCUMBENT POLITICS WAS PART OF STUMP SPEECHES BUT THE NEWCOMERS NOW ARE NOT SO MUCH OUTSIDERS AS MECHANICS BENT ON MAKING GOVERNMENT WORK DIRK KEMPTHORNE A SENATE REPUBLICAN FRESHMAN FROM IDAHO WAS BOISE'S MAYOR WHEN HE RAN LAST YEAR AND FOR ALL OF HER ANTIESTABLISHMENT CREDENTIALS HOUSE DEMOCRAT CYNTHIA MCKINNEY IS A FORMER STATE LEGISLATOR FROM GEORGIA AND IS ALSO THE DAUGHTER OF A POLITICALLY PROMINENT FAMILY THERE JANE HARMAN A DEMOCRATIC NEWCOMER TO THE HOUSE FROM CALIFORNIA IS A FORMER SENATE AND WHITE HOUSE AIDE AND MASSACHUSETTS REPUBLICAN PETER BLUTE ALSO NEW TO THE HOUSE DRAWS ON AN IRISH POLITICAL LINEAGE RUNNING TO BOSTON MAYORAL POLITICS IN THE 1960S THIS EXPERIENCE CAN OPEN DOORS AS WELL TO NEW COALITIONS ROSS PEROT WAS A MAJOR POLITICAL FORCE WHEN MANY OF THE NEWCOMERS FIRST SHAPED THEIR CAMPAIGNS LAST SPRING AND THERE IS AN UNDERLYING FISCAL CONSERVATISM AMONG EVEN THOSE DEMOCRATS WHO ARE MOST LIBERAL ON SOCIAL ISSUES AT THE SAME TIME A REPUBLICAN SUCH AS MR BLUTE WHO OUSTED A NINETERM INCUMBENT KNOWS THAT THE DEMOCRATS WILL BE BACK TARGETING HIM IN TWO YEARS AND THAT HE MUST ADAPT TO A CENTRAL MASSACHUSETTS DISTRICT THAT BILL CLINTON CARRIED HANDILY IN NOVEMBER FOLLOWING ARE SNAPSHOTS OF SOME OF THE NEWCOMERS TO CONGRESS THIS YEAR NO ONE WORRIES VERY MUCH ABOUT JANE HARMAN'S FINDING HER WAY IN CONGRESS WHILE HER CLASSMATES WERE STILL CAMPED OUT IN HOTEL ROOMS AND HUNTING FOR PLACES TO LIVE LAST MONTH SHE WAS ALREADY ENTERTAINING DEMOCRATIC AND REPUBLICAN COLLEAGUES AT THE HOME SHE HAS LONG MAINTAINED IN WASHINGTON WITH THE BLESSING OF HOUSE ARMED SERVICES COMMITTEE CHAIRMAN LES ASPIN SHE WAS ALL BUT ASSURED OF A SEAT ON THE MILITARY PANEL EVEN BEFORE HER ELECTION IN NOVEMBER AND WHEN REP THOMAS FOLEY NEEDED A FRESHMAN DEMOCRAT TO SECOND HIS NOMINATION AS SPEAKER MS HARMAN WAS TAPPED TO STAND FOR HIM IN THE PARTY CAUCUS I DON'T CLAIM TO BE AN OUTSIDER I CLAIM TO BE A REFORMER SAYS THE WEALTHY 47YEAROLD CALIFORNIAN AND I WANT TO BE A BRIDGE BUILDER TO REPUBLICANS SHE IS WELL SUITED TO THE TASK MS HARMAN'S CAMPAIGN SLOGAN PRO CHOICEPRO CHANGE TAPPED INTO THE ABORTIONRIGHTS MOVEMENT THAT HELPED ELECT A RECORD NUMBER OF WOMEN TO THE HOUSE THIS YEAR INCLUDING SEVEN FROM CALIFORNIA BUT SHE ALSO BRINGS MODERATE PROBUSINESS CREDENTIALS THAT HELPED HER WIN A COSTLY LONGSHOT CAMPAIGN IN A LARGELY REPUBLICAN DISTRICT A CORPORATE ATTORNEY SHE CASTS HERSELF AS AN ALLY OF HER HOME STATE'S BELEAGUERED DEFENSE INDUSTRY AND PROMISES TO USE HER POSITION ON ARMED SERVICES TO ASSIST COMPANIES IN CONVERTING TO COMMERCIAL ENTERPRISES BETTER SUITED TO THE POSTCOLD WAR WORLD IN THE SAME VEIN SHE WON A PLACE ON THE SCIENCE AND TECHNOLOGY COMMITTEE OF WHICH FELLOW CALIFORNIAN REP GEORGE BROWN IS CHAIRMAN SHE EMPHASIZES HER SUPPORT FOR A TARGETED CAPITALGAINS TAX CUT AND LINEITEM VETO AND JOINED TRADITIONAL SOUTHERN CONSERVATIVES AND MODERATES BEHIND SOUTH CAROLINA REP JOHN SPRATT'S UNSUCCESSFUL BID THIS MONTH FOR THE HOUSE BUDGET CHAIRMANSHIP THE WIFE OF SIDNEY HARMAN CHAIRMAN OF AUDIOEQUIPMENT MANUFACTURER HARMAN INTERNATIONAL INDUSTRIES INC MS HARMAN DOESN'T LACK FOR MEANS OR ENTREE AS A TEENAGER IN LOS ANGELES SHE GOT INTO THE 1960 DEMOCRATIC CONVENTION LONG ENOUGH TO MEET ELEANOR ROOSEVELT AND AFTER SMITH COLLEGE AND HARVARD LAW SCHOOL SHE WORKED FOR FORMER CALIFORNIA SEN JOHN TUNNEY BEFORE MOVING OVER FOR A SHORT STINT IN THE CARTER WHITE HOUSE SHE HAS REMAINED A PARTY ACTIVIST AND FUNDRAISER THROUGHOUT THE PAST DECADE AND HER CAMPAIGN RELIED HEAVILY ON HER PERSONAL WEALTH TO FINANCE COSTLY NETWORK TELEVISION ADS IN THE LOS ANGELES MEDIA MARKET HER OPPONENT LOS ANGELES CITY COUNCILWOMAN JOAN MILKE FLORES RAN ON AN ANTIABORTION PLATFORM AFTER DEFEATING MAUREEN REAGAN THE FORMER PRESIDENT'S DAUGHTER IN THE GOP PRIMARY AND MS HARMAN COULD YET PROVE VULNERABLE IF REPUBLICANS FIELD A CONSERVATIVE PROABORTIONRIGHTS CHALLENGER IN THE FUTURE THE RACE ALSO DEMANDED THAT SHE PUT DOWN ROOTS AGAIN IN CALIFORNIA AND FOR ALL HER IMAGE OF INTENSE POWER SHE HAS TO STRUGGLE WITH THE CONFLICTS OF BEING A MOTHER WORKING THOUSANDS OF MILES FROM HER TWO CHILDREN AGES 8 AND 10 BY THE TIME THE DECEMBER CAUCUSES WERE OVER SHE HAD BEEN AWAY FOR 10 DAYS AND WHILE MANY OF HER CLASSMATES MOVED ON TO AN ORIENTATION SESSION AT HARVARD MS HARMAN FIRST FLEW HOME A HIGHSCHOOL DROPOUT WHO WAS LATER WOUNDED IN COMBAT AS A MARINE IN VIETNAM FRANK TEJEDA HASN'T TIRED OF SCHOOL EVER SINCE AFTER COMPLETING COLLEGE BACK HOME IN SAN ANTONIO HE WENT ON TO COLLECT DEGREES AT THE UNIVERSITY OF CALIFORNIA BERKELEY HARVARD AND YALE HE GOT HIS PARATROOPER WINGS AS A 40SOMETHING RESERVIST AND BRUSHED UP ON HIS MAPREADING SKILLS AT THE MILITARY'S PATHFINDER SCHOOL EVEN AS HE WAS SERVING IN THE TEXAS LEGISLATURE I LIKE TO BE ACTIVE HE SAYS WITH APPARENT UNDERSTATEMENT MR TEJEDA'S ELECTION TO CONGRESS WAS NEVER IN DOUBT AS A STATE SENATOR THE 47YEAROLD DEMOCRAT HELPED TO CARVE OUT THE NEW 28TH DISTRICT WHICH DRAWS THE BULK OF ITS VOTE FROM HISPANIC NEIGHBORHOODS IN SOUTH SAN ANTONIO AND BEXAR COUNTY AIR FORCE AND ARMY BASES IN THE SAME AREA SAN ANTONIO IS MILITARY TOWN USA HE NOTES EXPLAIN HIS COMMITTEE ASSIGNMENTS TO ARMED SERVICES AND VETERANS AFFAIRS BUT HIS STRONG BASE AT HOME AND POLITICAL SKILLS GIVE HIM GREATER RANGE AS A BRIDGE NOT ONLY TO BLACKS BUT ALSO TO MORE CONSERVATIVE MEMBERS OF THE HOUSE MR TEJEDA IS ONE OF EIGHT HISPANIC FRESHMEN IN THE HOUSE THIS YEAR A RECORD NUMBER THAT WILL NEARLY DOUBLE THE TOTAL HISPANIC MEMBERSHIP TO 17 NOT INCLUDING DELEGATES FROM THE VIRGIN ISLANDS AND PUERTO RICO THIS GROWTH HAS BEEN ACCOMPANIED BY THE APPOINTMENT OF REP BILL RICHARDSON D NM AS A CHIEF DEPUTY WHIP IN THE LEADERSHIP AND BY THE ELECTION OF NEW YORK REP JOSE SERRANO AS THE NEW LEADER OF THE HISPANIC CAUCUS THE BRONX DEMOCRAT HAS PROMISED A MORE ACTIVIST APPROACH AND A WILLINGNESS TO WORK WITH THE LARGER BLACK CAUCUS ON LEGISLATION AND MR TEJEDA WAS PART OF AN ALLIANCE THAT HELPED ELECT REP BOBBY RUSH A FORMER BLACK PANTHER FROM CHICAGO AND XAVIER BECERRA A FORMER CALIFORNIA ASSEMBLYMAN TO LEADERSHIP POSITIONS FOR THE DEMOCRATIC FRESHMAN CLASS AT THE SAME TIME MR TEJEDA'S VIETNAM COMBAT EXPERIENCE GIVES HIM AN IN WITH SUCH OLDER INCUMBENTS AS PENNSYLVANIA REP JOHN MURTHA A MARINE VETERAN OF THE SAME WAR AND NOW CHAIRMAN OF THE DEFENSE APPROPRIATIONS SUBCOMMITTEE WHEN VETERANS AFFAIRS COMMITTEE CHAIRMAN SONNY MONTGOMERY WAS CHALLENGED IN THE DEMOCRATIC CAUCUS MR TEJEDA WAS AMONG THOSE SUPPORTING THE CONSERVATIVE MISSISSIPPIAN UNDERSCORING HIS POTENTIAL TO MOVE BETWEEN CAMPS ELECTED TO THE TEXAS LEGISLATURE IN 1976 MR TEJEDA MOVED TO THE STATE SENATE A DECADE LATER HIS IMAGE IS THAT OF A MODERATE WHO WAS PROGRESSIVE ON SCHOOLFINANCE ISSUES IMPORTANT TO LOWERINCOME COMMUNITIES BUT ALSO PROBUSINESS ON WORKERCOMPENSATION REFORMS HE HAS FOUGHT WITH THE POWERFUL TRIAL LAWYERS LOBBY A FAVORITE TARGET OF THE OUTGOING PRESIDENT BUSH AND APART FROM HIS ANTIABORTION STANCE HIS OPPOSITION TO LEGALIZED PARIMUTUEL BETTING IN THE EARLY 1980'S BUILT ALLIANCES WITH SOUTHERN BAPTIST INTERESTS IN TEXAS FRANK IS A GUY WHO WANTS TO DO RIGHT SAYS WESTON WARE ASSOCIATE DIRECTOR OF THE CHRISTIAN LIFE COMMISSION HE IS NOT AFRAID HE'S NOT AFRAID OF POWER AND FACING POWER DIRK KEMPTHORNE MAY ALREADY BE A PROFESSIONAL POLITICIAN BUT THE MESSAGE HE WILL BRING TO THE US SENATE FROM IDAHO CARRIES STRONG ECHOES OF ROSS PEROT HIS FIRST PRIORITY THE NEWLY ELECTED REPUBLICAN SENATOR SAYS IS TO ATTACK THE DEFICIT HE WANTS TO DO IT BY CUTTING SPENDING RATHER THAN BY RAISING TAXES AND SAYS ALL AMERICANS SHOULD BE PREPARED TO SACRIFICE EVEN BENEFICIARIES OF SUCH POLITICALLY SACROSANCT ENTITLEMENT PROGRAMS AS MEDICARE IT NEEDS TO BE EVENHANDED MR KEMPTHORNE SAYS AND IT NEEDS TO BE ACROSSTHEBOARD MR KEMPTHORNE GAINED BUDGETBALANCING EXPERIENCE OF HIS OWN OVER THE PAST SIX YEARS AS MAYOR OF BOISE WHERE HE TAKES CREDIT FOR HELPING TO REVITALIZE A SAGGING DOWNTOWN IN COOPERATION WITH LOCAL BUSINESSES HIS CAMPAIGN MANAGED BY RETIRED SEN JAMES MCCLURE DIDN'T SUFFER FROM THE ELECTORATE'S ANTIPOLITICIAN MOOD HOWEVER DEMOCRATIC REP RICHARD STALLINGS HIS OPPONENT FOR THE SEAT OF RETIRING REPUBLICAN INCUMBENT STEVE SYMMS BORE THE GREATER BURDEN OF HOLDING OFFICE INSIDE THE BELTWAY THE AGGRESSIVELY CONSERVATIVE MR SYMMS SPENT TWO SENATE TERMS AS A RELIABLE OPPONENT OF DEMOCRATIC INITIATIVES MR KEMPTHORNE HAS RETAINED MR SYMMS'S TOP AIDE BUT HAVING CAMPAIGNED AGAINST WASHINGTON GRIDLOCK HE IS RESERVING JUDGMENT ABOUT MR CLINTON'S EMERGING AGENDA MRKEMPTHORNE 41 A FORMER EXECUTIVE DIRECTOR OF THE IDAHO HOMEBUILDERS ASSOCIATION SAYS HE WILL OPPOSE MR CLINTON IF HE PROPOSES A NATIONALIZED HEALTHCARE PLAN SUCH AS THE SOCALLED PLAYORPAY IDEA BUT THEN MR CLINTON HAS ALREADY MOVED OFF THAT POSITION WHICH WOULD REQUIRE BUSINESSES EITHER TO PROVIDE HEALTH INSURANCE FOR WORKERS OR TO CONTRIBUTE TO A GOVERNMENT FUND THAT WOULD BE USED TO HELP PROVIDE INSURANCE FOR PEOPLE WITHOUT COVERAGE SEN KEMPTHORNE SAYS HE WILL SUPPORT THE NEW CHIEF EXECUTIVE IN HIS CALLS FOR A PRESIDENTIAL LINEITEM VETO FOR AN INVESTMENT TAX CREDIT TO SPUR THE ECONOMY AND FOR A LONGTERM DEFICITREDUCTION PLAN BEYOND THAT MR KEMPTHORNE ADDS I'M ANXIOUS TO HEAR THE NEW PRESIDENT'S INAUGURAL SPEECH LIKE MANY WESTERN POLITICIANS MR KEMPTHORNE ECHOES THE RESENTMENT OF FEDERAL INTRUSION THAT HELPED SPARK THE SAGEBRUSH REBELLION OF THE REAGAN YEARS ASIDE FROM CALLS FOR A DEFICIT REDUCTION HE SAYS THE LOUDEST MESSAGE HE RECEIVED FROM IDAHO VOTERS WAS TO GET THE GOVERNMENT OFF OUR BACKS HE HOPES TO APPLY THAT VIEW TO THE STEWARDSHIP OF IDAHO'S NATURAL RESOURCES FROM A SEAT ON THE ENVIRONMENT AND PUBLIC WORKS COMMITTEE JUST AS THE WHITE HOUSE HAS PASSED FROM THE COLD WAR GENERATION TO ITS SUCCESSOR SO HAS THE CONGRESS MOVED AWAY FROM THE TRADITIONAL CIVILRIGHTS AGENDA AND EXHIBIT A IS A YOUNG DEMOCRATIC HOUSE MEMBER FROM GEORGIA NAMED CYNTHIA MCKINNEY MS MCKINNEY WAS ONLY 10 YEARS OLD WHEN CONGRESS PASSED THE VOTING RIGHTS ACT AND USHERED IN AN AGE OF RISING BLACK ELECTORAL PARTICIPATION A FEW YEARS LATER HER FATHER WON A SEAT IN THE GEORGIA GENERAL ASSEMBLY MS MCKINNEY ULTIMATELY WOULD REAP THE FRUITS OF THAT POLITICAL REVOLUTION HERSELF WINNING A SEAT IN THE LEGISLATURE HERSELF THREE YEARS AGO AND THEN LAST MONTH CAPTURING ONE OF THE NEW BLACKMAJORITY CONGRESSIONAL DISTRICTS CREATED DURING REAPPORTIONMENT UNDER PROVISIONS OF THE VOTINGRIGHTS LAW AMBITIOUS AND OUTSPOKEN MS MCKINNEY JOINS A CONGRESSIONAL BLACK CAUCUS WHOSE MEMBERSHIP HAS SWELLED TO 40 INCLUDING SEN CAROL MOSELEY BRAUN OF ILLINOIS FROM 26 IN THE LAST CONGRESS SHE PLEDGES TO FOCUS HER EFFORTS ON THOSE PEOPLE WHO HAVE BEEN FORGOTTEN OF WHOM THERE ARE PLENTY IN GEORGIA'S 11TH DISTRICT THE SPRAWLING TERRITORY ENCOMPASSES VAST POOR RURAL AREAS AS WELL AS MIDDLECLASS SUBURBS OF ATLANTA AND PORTIONS OF AUGUSTA AND SAVANNAH HER SEAT ON THE AGRICULTURE COMMITTEE COULD PROVE TO BE A USEFUL PLATFORM HOWEVER MS MCKINNEY 37 BRINGS AN AGENDA EXTENDING BEYOND THE TRADITIONAL CIVILRIGHTS CONCERNS THAT PREOCCUPIED HER FATHER'S GENERATION IN THE GEORGIA LEGISLATURE SHE DREW ATTENTION FOR AMONG OTHER THINGS OPPOSING THE PERSIAN GULF WAR AND SHE IS PURSUING A DOCTORATE AT BOSTON'S FLETCHER SCHOOL OF LAW AND DIPLOMACY AND STILL PLANS TO COMPLETE HER THESIS OVER THE NEXT COUPLE OF YEARS A MAVERICK WHO WON THE SEAT OVER THE OPPOSITION OF STATE DEMOCRATIC LEADERS MS MCKINNEY NONETHELESS IS SENDING SIGNALS OF COOPERATION TO HER NEW DEMOCRATIC COLLEAGUES WHO ELECTED HER SECRETARY OF THE LARGE FRESHMAN CLASS I DIDN'T RUN AGAINST CONGRESS SHE SAYS RATHER HER THEME WAS ACCOUNTABILITY TO HER CONSTITUENTS AND SHE HOPES TO DELIVER BY HELPING TO BRING ECONOMIC DEVELOPMENT TO HER DISTRICT SHE SAYS SHE WILL BACK MR CLINTON'S AGENDA HOPING IT WILL PRODUCE PUBLICWORKS PROJECTS FOR GEORGIA DISPLAYING THE PRACTICAL STREAK THAT RUNS THROUGH THE CONGRESSIONAL FRESHMEN SHE DISMISSES CAMPAIGNSEASON COMPLAINTS FROM SOME OTHER BLACK POLITICIANS THAT MR CLINTON PLAYED DOWN BLACK CONCERNS IN SEARCH OF WHITE VOTES CLINTON DID WHAT IT TAKES TO WIN SHE SAYS NOT IN ANGER BUT IN ADMIRATION SCANDAL AND STYLE HELPED PETER BLUTE OUST DEMOCRAT JOSEPH EARLY NOW THE 36YEAROLD REPUBLICAN UPSTART NEEDS TO PROVE HIS SUBSTANCE TO SURVIVE WALKING AROUND THE CAPITOL HE ADMITS TO A CERTAIN MR SMITH GOES TO WASHINGTON AWE OF WHERE HE FINDS HIMSELF HIS VOICE IS MORE SOFTSPOKEN THAN THAT OF THE AGGRESSIVE YOUNG MAN ON THE STUMP JUST MONTHS AGO AND THERE IS THE SELFEFFACING HUMOR OF A POLITICIAN WHO KNOWS THAT HE WILL SOON BECOME THE HUNTED HIMSELF WHEN DEMOCRATS TRY TO TAKE BACK THE SEAT IN 1994 AS A MASSACHUSETTS LEGISLATOR MR BLUTE MADE HIS MARK AS A FISCAL CONSERVATIVE AND OPPONENT OF TAXES BUT NOW HE MUST SHOW HE CAN BE TRUE TO THIS PLATFORM WHILE ALSO BUILDING SOME WORKING RELATIONSHIP WITH MEMBERS OF THE NEW CLINTON ADMINISTRATION WHOSE EMPHASIS ON JOBS AND THE ECONOMY DOVETAILS WITH HIS OWN NEEDS AT HOME ALTHOUGH MR BLUTE WHILE STILL THE REPUBLICAN CHALLENGER SATIRIZED MR EARLY AS A SYMBOL OF OLDSTYLE PORKBARREL POLITICS HIS OWN COMMITTEE CHOICES REFLECT A SENSITIVITY TO THE SAME CONSTITUENT INTERESTS AT HIS REQUEST THE GOP LEADERSHIP SAVED HIM A PLACE ON THE HOUSE PUBLIC WORKS AND TRANSPORTATION COMMITTEE AND IN AN APPARENT BID TO COURT WORCESTER'S BIOMEDICAL INTERESTS MR BLUTE WON A SEAT ON THE SCIENCE AND TECHNOLOGY PANEL NEITHER COMMITTEE POST MATCHES THE CLOUT MR EARLY COMMANDED AS A SENIOR MEMBER OF THE HOUSE APPROPRIATIONS COMMITTEE BUT IN CHOOSING MR BLUTE VOTERS PICKED NOT ONLY A REPUBLICAN BUT ALSO A NEW POLITICAL STYLE WHILE THE NEW CONGRESSMAN'S OWN POLITICAL LINEAGE RUNS BACK TO THE LACE CURTAIN IRISH DEMOCRATIC PRECINCTS OF BOSTON'S WEST ROXBURY HE ALSO CONVEYES THE IMAGE OF A TELEGENIC SUBURBAN REPUBLICAN IN CONTRAST TO MR EARLY IN HIS WORCESTER ENCLAVE WEAKENED BY THE HOUSE BANK AFFAIR AND REDISTRICTING THE INCUMBENT WAS UNABLE TO ADAPT TO THE POLITICAL CHANGES FORCED UPON HIM MR EARLY WAS HARDLY THE ONLY DEMOCRATIC INCUMBENT TURNED OUT UNDER A CLOUD ON ELECTION DAY HIS MASSACHUSETTS COLLEAGUE NICHOLAS MAVROULES UNDER INDICTMENT ON CORRUPTION CHARGES LOST TO ANOTHER YOUNG REPUBLICAN CHALLENGER PETER TORKILDSEN AND PROMINENT REP MARY ROSE OAKAR OF OHIO WAS FELLED BY MARTIN HOKE BUT LIKE THE DEMOCRATIC WATERGATE BABIES SWEPT INTO OFFICE AFTER RICHARD NIXON'S DISGRACE NEARLY TWO DECADES AGO THESE NEW GOP LEGISLATORS WILL DEPEND ON OLDSTYLE CONSTITUENT SERVICES TO SURVIVE AS THE EAGER DEMOCRATIC FRESHMAN CONGRESSMAN FROM PADUCAH KY TOM BARLOW WOULD ALSO SEEM TO BRING HIS OWN MR SMITH QUALITY TO THE CAPITOL IN FACT HE HAS TURNED THE OLD JIMMY STEWART MOVIE ON ITS HEAD DURING THE HARD TIMES OF THE 1930S MR BARLOW'S PARENTS HEADED EAST FROM KENTUCKY AND LANDED TEACHING JOBS IN AND AROUND WASHINGTON MR BARLOW'S CHILDHOOD COINCIDED WITH THE RAPID POSTWAR GROWTH OF THE CAPITAL AND ITS SURROUNDING SUBURBS FILLED BY THE BURGEONING CLASS OF FEDERAL EMPLOYEES AND ASSORTED LAWYERS CONSULTANTS AND ADVOCATES TRYING TO INFLUENCE THEM AFTER A STINT IN THE BANKING INDUSTRY MR BARLOW STEPPED INTO THE WORLD OF GOVERNMENT AND POLITICS AS A STAFFER FOR THE NATURAL RESOURCES DEFENSE COUNCIL IN THE MID1980S AFTER A DECADE WITH THE ACTIVIST ENVIRONMENTAL GROUP HE MOVED TO THE RURAL WESTERN KENTUCKY COUNTY HIS PARENTS HAD COME FROM TRIED CONSULTING FOR A WHILE LANDED A JOB AS A TELEPHONEEQUIPMENT SALESMAN AND BEGAN DABBLING IN ELECTIVE POLITICS HIS BREAKTHROUGH CAME IN THE FORM OF TWO SCANDALS THE SAVINGSANDLOAN MESS AND THE HOUSE BANK THAT ENMESHED NINETERM INCUMBENT DEMOCRATIC REP CARROLL HUBBARD AFTER KNOCKING OFF MR HUBBARD IN THE DEMOCRATIC PRIMARY MR BARLOW CRUISED TO AN EASY 60 WIN OVER REPUBLICAN STEVE HAMRICK IN THE GENERAL ELECTION MANY OF THE FACES HE WILL SEE IN THE CAPITOL ARE FAMILIAR AT TIMES HIS WORK IN LOBBYING CONGRESS FOR NRDC PLACED HIM AT ODDS WITH HOUSE SPEAKER THOMAS FOLEY WHO WAS THEN THE AGRICULTURE COMMITTEE CHAIRMAN NOW HE HAS LANDED A SEAT ON AGRICULTURE HIMSELF REPRESENTING A WESTERN KENTUCKY DISTRICT WITH STRONG FARMING INTERESTS HE SAYS HE PREFERS TO BE KNOWN AS A CONSERVATIONIST RATHER THAN AN ENVIRONMENTALIST I'VE BECOME MORE CONSERVATIVE AS I'VE GOTTEN OLDER SAYS THE 52YEAROLD MR BARLOW BUT HE IS DIFFICULT TO LABEL IDEOLOGICALLY HE'S INCLINED TO SUPPORT MR CLINTON ON MOST ECONOMIC ISSUES BUT DOESN'T GO ALONG WITH MR CLINTON'S SUPPORT OF THE NORTH AMERICAN FREE TRADE AGREEMENT MR BARLOW RECEIVED STRONG UNION SUPPORT IN HIS CAMPAIGN AND WORRIES THAT THE TRADE AGREEMENT COULD HURT THE CHEMICAL TEXTILE AND AUTOPARTS INDUSTRIES IN HIS DISTRICT HIS ANTIABORTION STANCE IS ALSO AT ODDS WITH THE VIEWS OF MR CLINTON AND THE DEMOCRATIC CAUCUS WHAT MR BARLOW SHARES WITH NEARLY ALL HIS FELLOW NEWCOMERS IS POLITICAL SEASONING THAT MAY PRESAGE A QUICK START FOCUSED LESS ON INSTITUTIONAL UPHEAVAL THAN ON AMERICA'S BRIMMING PLATE OF DOMESTIC PROBLEMS LET'S GET IN THERE AND GET TO WORK MR BARLOW SAYS CONFIDENT THAT HE AND HIS COLLEAGUES ALREADY KNOW HOW THE GAME IS PLAYED MESSRS ROGERS AND HARWOOD ARE STAFF REPORTERS IN THE WALL STREET JOURNAL'S WASHINGTON BUREAU 9301200056 930120 GLENFED INC OFFERS TO SETTLE WITH US ON THRIFT LAW FIGHT GLENDALE CALIF GLENFED INC OFFERED TO SETTLE FOR 700 MILLION ITS LEGAL FIGHT WITH THE GOVERNMENT OVER A PROVISION OF THRIFT LEGISLATION THE US COURT OF FEDERAL CLAIMS HELD LAST SUMMER THAT THE GOVERNMENT HAD BREACHED A CONTRACT WITH GLENFED BY NULLIFYING THE THRIFT'S 557 MILLION OF GOODWILL AN INTANGIBLE ASSET THAT REGULATORS USED TO COUNT AS THRIFT CAPITAL A MASSIVE THRIFT BAILOUT PACKAGE PASSED IN 1989 RULED THAT GOODWILL AND CERTAIN OTHER ACCOUNTING ENTRIES NO LONGER QUALIFIED AS CAPITAL THE COURT HASN'T SET DAMAGES BUT GLENFED HAS SAID THE NULLIFICATION OF ITS GOODWILL EVENTUALLY COST IT 14 BILLION THAT BLOW TO CAPITAL CONTRIBUTED TO GLENFED'S CURRENT STATUS AS ONE OF THE BIGGEST AILING THRIFTS IN THE COUNTRY GLENFED FACES A HIGH PROBABILITY OF GOVERNMENT SEIZURE UNLESS IT CAN RAISE HUNDREDS OF MILLIONS OF DOLLARS OF FRESH CAPITAL BY JUNE 30 THE JUSTICE DEPARTMENT DECLINED TO COMMENT ON THE SETTLEMENT OFFER HOWEVER MANY ANALYSTS DON'T EXPECT THE GOVERNMENT TO GO ALONG LARGELY BECAUSE THE GLENFED CASE MIRRORS DOZENS OF OTHERS CHALLENGING THE GOODWILL PROVISIONS IN THE BAILOUT LAW A FINAL RULING AGAINST THE GOVERNMENT WOULD SERIOUSLY ERODE REGULATORS' ABILITY TO ENFORCE THE LAW 9301200055 930120 BUSINESS BRIEF FOXMEYER CORP CONCERN HAS 3RDPERIOD LOSS AS RESULT OF CUSTOMER DEBT FOXMEYER CORP REPORTED A FISCAL THIRDQUARTER LOSS OF 177 MILLION OR 61 CENTS A SHARE BECAUSE OF A CHARGE TO COVER UNPAID BILLS BY PHARMOR INC ITS LARGEST CUSTOMER THE COMPANY HAD NET INCOME OF 102 MILLION OR 42 CENTS A SHARE A YEAR EARLIER ITS THIRDPERIOD LOSS CAME DESPITE A 54 INCREASE IN SALES FOR THE QUARTER ENDED DEC 31 TO 121 BILLION FROM 7881 MILLION THE DALLASBASED WHOLESALE DRUG DISTRIBUTOR ALSO CITED SMALLER INCREASES IN DRUG PRICES AND HEIGHTENED PRICE COMPETITION IN THE INDUSTRY BUT THE BULK OF THE DAMAGE WAS DONE BY THE FINANCIAL PROBLEMS OF PHARMOR THE YOUNGSTOWN OHIO DISCOUNT RETAILING CHAIN THAT WAS PLUNGED INTO BANKRUPTCYLAW PROCEEDINGS IN AUGUST AFTER SOME TOP EXECUTIVES WERE ACCUSED OF EMBEZZLEMENT IN THE QUARTER FOXMEYER WROTE OFF 40 MILLION OF THE 724 MILLION IT IS OWED BY PHARMOR AND ESTABLISHED A RESERVE OF 28 MILLION FOR ANTICIPATED LEGAL AND COLLECTION COSTS AND SOFTWARE DEVELOPMENT COSTS 9301200054 930120 ENTERPRISE TELEMARKETERS FIGHT BANNING OF AUTODIALERS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL KATHRYN MOSER LOVES A MARKETING DEVICE THAT MAKES MILLIONS OF CONSUMERS SEE RED HER COMPANY IN KEIZER ORE USES A 178650 COMPUTER THAT AUTOMATICALLY DIALS TELEPHONE NUMBERS DELIVERS A RECORDED SALES PITCH AND LETS POTENTIAL CUSTOMERS LEAVE MESSAGES FOR MANY PEOPLE SUCH CALLS ARE AN INTRUSION BUT DESPITE THEIR UNPOPULARITY MRS MOSER MAINTAINS THAT THEY ARE THE KEY TO SURVIVAL FOR MANY SMALL BUSINESSES INCLUDING HERS INDEED MRS MOSER SAYS THE TELECOMPUTER IS THE ONLY SALES TOOL THAT TURNS UP ENOUGH LEADS TO KEEP HER FAMILY'S AAA1 LUCKY LEPRECHAUN CO CHIMNEYSWEEPING BUSINESS IN THE BLACK AND SHE ISN'T ABOUT TO LET THE GOVERNMENT OUTLAW IT MRS MOSER AND THE NATIONAL ASSOCIATION OF TELECOMPUTER OPERATORS AN ORGANIZATION THAT SHE FOUNDED TO FIGHT GOVERNMENT RESTRICTIONS ON TELECOMPUTERS WON A PRELIMINARY INJUNCTION LAST MONTH STOPPING THE FEDERAL COMMUNICATIONS COMMISSION FROM ENFORCING A KEY PROVISION OF THE TELEPHONE CONSUMER PROTECTION ACT OF 1991 TO PROTECT CONSUMERS FROM PESKY TELEMARKETING CALLS LAWMAKERS BARRED COMMERCIAL VENTURES FROM USING AUTODIALERS TO DELIVER PRERECORDED MESSAGES IN ISSUING THE INJUNCTION FEDERAL DISTRICT JUDGE JAMES A REDDEN IN PORTLAND ORE WROTE THAT THE LAW MIGHT NOT MAKE MUCH OF A DENT IN THE VOLUME OF UNSOLICITED TELEMARKETING CALLS BUT HE CITED MRS MOSER'S TESTIMONY THAT IT COULD WIPE OUT LUCKY LEPRECHAUN FEDERAL LAW DOES PERMIT POLLSTERS POLITICIANS AND NONPROFIT GROUPS TO DELIVER PRERECORDED MESSAGES AND IT ALLOWS COMPANIES TO USE DEVICES KNOWN AS PREDICTIVE DIALERS THESE RING MANY PHONE NUMBERS SIMULTANEOUSLY AND INSTANTLY TRANSFER ANSWERED CALLS TO LIVE OPERATORS WHO MAY GIVE A SALES PITCH OR OFFER TO PLAY A RECORDED MESSAGE BUT MRS MOSER ARGUES MOMANDPOP BUSINESSES CAN'T AFFORD LIVE OPERATORS A JUSTICE DEPARTMENT LAWYER SAYS THE GOVERNMENT COULD APPEAL THE INJUNCTION OR PROCEED WITH A TRIAL THIS ISN'T THE FIRST TIME THAT MRS MOSER A PEPPERY 43YEAROLD AND HER HUSBAND RONALD 47 HAVE TAKEN ON THE GOVERNMENT AN OREGON STATE APPEALS COURT RULED IN THEIR FAVOR DECLARING THAT A SIMILAR OREGON TELEMARKETING LAW VIOLATED THEIR FREESPEECH RIGHTS THAT CASE IS NOW PENDING IN OREGON'S SUPREME COURT THE MOSERS STARTED LUCKY LEPRECHAUN IN 1986 IN SALT LAKE CITY USING 5000 OF THE 8000 MRS MOSER RECEIVED IN A BUYOUT FROM HER FORMER EMPLOYER WHILE HER HUSBAND CLEANED AND REPAIRED CHIMNEYS MRS MOSER TRUDGED DOORTODOOR TO HAND OUT FLIERS THE PAYOFF WAS PALTRY LUCKY LEPRECHAUN'S FORTUNES TURNED IN SEPTEMBER 1988 AFTER MRS MOSER BEGAN USING A TELECOMPUTER THAT CAN DIAL AND DELIVER MESSAGES TO ABOUT 400 CONSUMERS A DAY IN THE FIRST WEEK WE RECOVERED THE FULL 43650 MONTHLY RENTAL FEE MRS MOSER SAYS ADDING THAT MR MOSER CAN GENERALLY CLEAN AS MANY AS SIX CHIMNEYS A DAY AT AN AVERAGE COST OF ABOUT 50 THE MOSERS LATER DECIDED FOR HEALTH REASONS TO MOVE TO A STATE WITH MILDER WINTERS THAN UTAH'S THEY CHOSE OREGON AND MOVED THERE AFTER GETTING OFFICIAL ASSURANCES THAT OREGON HAD NO RESTRICTIONS ON AUTODIALERS THEY SAID IT WAS OK BUT DIDN'T TELL US A NEW LAW WAS IN THE WORKS RECALLS MR MOSER IT WENT INTO EFFECT IN OCTOBER 1989 TWO MONTHS AFTER THEIR MOVE FORCING THEM TO SWITCH OFF THEIR MACHINE AFTER WEEKS OF SLUGGISH ORDERS THE MOSERS TURNED TO THE AMERICAN CIVIL LIBERTIES UNION WHICH HANDLED THE OREGON CASE TO FINANCE THE FEDERAL LAWSUIT THE MOSERS ROUNDED UP ABOUT 40 SMALL BUSINESSES INCLUDING KOLKER SYSTEMS INC CARLSBAD CALIF THE SOLE US MAKER OF SINGLEPHONELINE TELECOMPUTERS AND FORMED THE NATIONAL ASSOCIATION OF TELECOMPUTER OPERATORS FEW CONSUMERS SHARE THE MOSERS' FIRST AMENDMENT CONCERNS INDEED LAWMAKERS AND REGULATORS HAVE BEEN FLOODED WITH COMPLAINTS FROM PEOPLE WHO WANT TO SILENCE COMPUTERGENERATED PITCHES PEOPLE ARE TERRIBLY ANNOYED THAT THIS NEW TECHNOLOGY IS BEING USED TO INVADE THEIR PRIVACY SAYS GENE KIMMELMAN LEGISLATIVE DIRECTOR FOR THE CONSUMER FEDERATION OF AMERICA CHAIRMAN EDWARD MARKEY OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE PROPOSED DEVELOPING A LIST OF CONSUMERS WHO DON'T WANT TO GET TELEMARKETING CALLS AND BARRING TELEMARKETERS FROM CALLING THEM BUT THE BILL'S LANGUAGE WAS WEAKENED IN THE LEGISLATIVE PROCESS AND THE FCC APPROVED A BARE MINIMUM OF RULES TO CARRY OUT THE NEW LAW KAREN BROWN RESEARCH DIRECTOR FOR THE CENTER FOR THE STUDY OF COMMERCIALISM A WASHINGTONBASED GROUP THAT LOBBIED FOR A TOUGH TELEMARKETING LAW ARGUES THAT THE NEW LAW DOESN'T GO FAR ENOUGH THE GROUP WANTS THE FCC TO ESTABLISH A NATIONAL DATABASE OF CONSUMERS WHO DON'T WANT TO BE CALLED BY TELEMARKETERS BUT THE FCC RULES ONLY CALL FOR CONSUMERS TO ASK EACH TELEMARKETER TO REMOVE THEIR NAMES FROM CALLING LISTS TELEMARKETERS MUST COMPLY OR FACE FINES MS BROWN URGES CONSUMERS TO KEEP A TELENUISANCE LIST BY THEIR PHONES AND NOTE UNWELCOME CALLS WITHOUT RESTRICTIONS MS BROWN CONTENDS TELEMARKETING WILL MUSHROOM CONGRESS FOUND THAT 18 MILLION PEOPLE A DAY GET TELEMARKETING CALLS SHE NOTES NOW TELECOMPUTERS ARE BECOMING SO CHEAP AND EFFICIENT THAT THE 10000 OUT THERE COULD MULTIPLY TO 50000 IN A YEAR IF SOMEONE DOESN'T NIP IT IN THE BUD ALL TYPES OF TELEMARKETING ARE ANNOYING MRS MOSER COUNTERS THAT SHE NEEDS HER MACHINE TO SURVIVE SHE INSISTS THAT SHE TRIES TO LOWER THE ANNOYANCE LEVEL BY DELIVERING THE 15SECOND LUCKY LEPRECHAUN PITCH ONLY BETWEEN 9 AM AND 8 PM AND NEVER ON SUNDAYS AND TELEPHONE EXCHANGES USED BY HOSPITALS BUSINESSES AND GOVERNMENT AGENCIES ARE BLOCKED AS ARE THE NUMBERS OF IRATE CONSUMERS CHARLES HINKLE THE PORTLAND LAWYER WHO ARGUED BOTH THE STATE AND FEDERAL CASES SAYS CONSUMERS WHO DISLIKE UNSOLICITED CALLS HAVE A SIMPLE REMEDY HANG UP YOUR PHONE OTHERS DON'T SEE IT QUITE THAT WAY THOUGH WHERE DOES ALL THIS STOP ASKS KENNETH MCELDOWNEY EXECUTIVE DIRECTOR OF CONSUMER ACTION IN SAN FRANCISCO IF ONE SMALL BUSINESS WITH A SINGLE LINE CAN MAKE 150000 CALLS A YEAR WITH THIS SYSTEM WHAT HAPPENS IF EVERY SMALL BUSINESS GOT ONE HE ALSO SUGGESTS THAT THE FCC NEEDS TO ESTABLISH A NATIONAL DONOTCALL LIST CARL R KOLKER PRESIDENT OF KOLKER SYSTEMS SAYS LAWMAKERS IGNORED NEW TECHNOLOGY CONSUMERS WHO COMPLAINED THAT RECORDED MESSAGES FILLED THEIR ANSWERING MACHINES OR PREVENTED THEM FROM MAKING EMERGENCY CALLS WERE VICTIMS OF OLDER DEVICES THAT CAN'T BE USED UNDER THE NEW LAW HE SAYS EVEN SUCH CRITICS AS MS BROWN ACKNOWLEDGE THAT NEWER DEVICES AND ONES THAT HAVE BEEN UPGRADED TO COMPLY WITH THE NEW LAW CAN DROP CALLS WITHIN SECONDS AFTER THE RECIPIENT HANGS UP AND LET OPERATORS DELETE SPECIFIC NUMBERS OR BLOCKS OF NUMBERS FROM THE AUTOMATICDIALING SEQUENCE BUT MR MCELDOWNEY MAINTAINS THAT WHATEVER THE TECHNOLOGICAL ADVANCES THE CENTRAL PROBLEM REMAINS CONSUMERS' PRIVACY IS INVADED 9301200053 930120 TECHNOLOGY BRIEF THERMO CARDIOSYSTEMS INC STOCK DECLINES 15 ON NEWS OF DEVICE RECIPIENT'S DEATH THERMO CARDIOSYSTEMS INC'S STOCK SANK AFTER THE COMPANY'S ANNOUNCEMENT THAT A PATIENT USING ITS BATTERYPOWERED HEART DEVICE HAD DIED FROM A STROKE IN LATE TRADING ON THE AMERICAN STOCK EXCHANGE THERMO CARDIOSYSTEMS SHARES FELL 15 TO CLOSE AT 1875 DOWN 325 THE COMPANY DENIED THE PATIENT'S DEATH WAS LINKED TO THE DEVICE THE CAUSE OF THE STROKE HASN'T BEEN DETERMINED BUT AN INITIAL EXAMINATION OF THE HEARTMATE LEFT VENTRICULARASSIST DEVICE THAT HAD BEEN INSERTED INTO THE PATIENT SHOWED NO SIGNS OF DAMAGE OR DEFECTS ACCORDING TO VICTOR POIRIER PRESIDENT AND CHIEF EXECUTIVE OF THE WOBURN MASS MAKER OF HEARTASSISTING DEVICES THE PATIENT HAD BEEN SUPPORTED BY THE DEVICE FOR THE PAST 16 MONTHS WHILE AWAITING AN ORGAN DONOR HIS DOCTORS IN HOUSTON SAID STROKES ARE COMMON AMONG PATIENTS WITH CARDIOMYOPATHY A SLOW DETERIORATION OF THE HEART FROM WHICH HE SUFFERED THERMO CARDIOSYSTEMS IS A PUBLICLY HELD SUBSIDIARY OF THERMEDICS INC AND THERMO ELECTRON CORP 9301200052 930120 CREDIT MARKETS LONGTERM BOND RISES MORE THAN HALF POINT ON TALK OF POSSIBLE SHIFT IN TREASURY FINANCING BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICES OF MOST TREASURY SECURITIES WERE LITTLE CHANGED WITH THE EXCEPTION OF THE 30YEAR BOND WHICH ROSE MAINLY ON RUMORS OF SIZE REDUCTIONS IN THE NEXT QUARTERLY AUCTION THE 30YEAR TREASURY BOND ROSE MORE THAN 1/2 POINT OR 5 FOR A BOND WITH A 1000 FACE VALUE ITS YIELD DROPPED TO 730 FROM 735 FRIDAY THE TREASURY MARKET WAS CLOSED MONDAY IN OBSERVANCE OF THE MARTIN LUTHER KING HOLIDAY CORPORATIONS SOLD NEARLY 25 BILLION OF NEW BONDS THE LARGEST ISSUE OF THE DAY CAME FROM TIME WARNER INC WHICH SOLD 1 BILLION OF NEW BONDS FOR THE SECOND TIME IN AS MANY WEEKS DESPITE THE CONTINUED DELUGE OF NEW BONDS INVESTOR DEMAND FOR THE NEW ISSUES APPEARS STRONG MUNICIPAL ISSUERS SOLD ABOUT 12 BILLION IN NEW BONDS YESTERDAY MEANWHILE NEW YORK CITY'S COMPTROLLER'S OFFICE RELEASED MORE DETAILS ABOUT ITS PLANS TO SELL MUNICIPAL BONDS DENOMINATED IN YEN TO JAPANESE INVESTORS FUELING THE RALLY IN THE 30YEAR TREASURY BOND WAS CONTINUED TALK ABOUT THE OUTLOOK FOR TREASURY FINANCING OVER THE PAST WEEK THERE HAS BEEN WIDESPREAD TALK THAT THE CLINTON ADMINISTRATION WILL SHIFT MORE BORROWING TOWARD SHORTER MATURITIES AND POSSIBLY SHARPLY REDUCE THE AMOUNT OF LONG BONDS IN ADDITION THE MARKET APPEARED TO BE ENCOURAGED THAT ANY SHORTTERM GOVERNMENT SPENDING PACKAGE WOULD BE LIMITED AND TIED TO A LONGTERM DEFICIT REDUCTION PROGRAM TALK OF REDUCING THE AMOUNT OF LONG BONDS ISSUED HAS CIRCULATED BEFORE IN RECENT YEARS ONLY TO BE SQUELCHED BY THE TREASURY DEPARTMENT THIS TIME WITH A NEW ADMINISTRATION IT CAN'T BE RULED OUT AND THAT'S WHAT FEEDS THE MARKET SAID JAMES FRALICK CODIRECTOR OF ECONOMIC RESEARCH AT MORGAN STANLEY & CO LAST WEEK FOR EXAMPLE THE DEMOCRATIC STUDY GROUP OF THE HOUSE OF REPRESENTATIVES SAID THE GOVERNMENT COULD SAVE AS MUCH AS 53 BILLION IN A YEAR IF IT WERE TO ISSUE ALL OF ITS DEBT IN THE FORM OF THREEMONTH BILLS AND AS MUCH AS 27 BILLION WOULD BE SAVED IF JUST HALF OF ALL NEW ISSUANCE OF LONGTERM TREASURY SECURITIES WERE ISSUED IN BILLS FEW ECONOMISTS SUPPORT A DRASTIC SWITCH AND A NUMBER HAVE CRITICIZED THE ESTIMATE BECAUSE IT ASSUMES NO CHANGE IN INTEREST RATES OVER THE PERIOD BUT THE CONTROVERSIAL SUGGESTION HAS GAINED THE ATTENTION OF THE BOND MARKETS IN THE PAST FEW WEEKS IF A SWITCH IS MADE SAY TRADERS IT COULD RESULT IN A SMALLER ISSUANCE OF 30YEAR BONDS AS SOON AS THE SECOND WEEK OF FEBRUARY WHEN THE TREASURY HAS ITS QUARTERLY AUCTION OF 30YEAR BONDS 10YEAR NOTES AND THREEYEAR NOTES MR FRALICK OF MORGAN STANLEY ARGUED THAT IF A CHANGE WERE TO BE MADE IN THE BORROWING MIX IT PROBABLY WOULDN'T SHOW UP AT THE NEXT 30YEAR BOND AUCTION MY BEST GUESS IS WE'LL SEE SOME SCALING BACK IN THE 30YEAR BOND IN MAY HE SAID IF YOU THINK THE NEW ADMINISTRATION IS SERIOUS ABOUT REDUCING LONGTERM INTEREST RATES SAID JAMES KENNEY OF PRUDENTIAL SECURITIES INC IT WOULD BE WORTHWHILE TO BUY BONDS ACCORDING TO TRADERS SPECULATION ABOUT A LARGE BUYER OF 30YEAR BONDS ALSO HELPED TO BOOST PRICES FOR THAT MATURITY INTERMEDIATE SECURITIES MEANWHILE WERE SLIGHTLY LOWER THE FIVEYEAR NOTE FOR EXAMPLE DROPPED 1/8 POINT TO 100 23/32 FOR A YIELD OF 624 UP FROM 623 THE SELLING PRESSURE CAME AS THE MARKET GEARS UP FOR NEW ISSUANCE OF TWOYEAR AND FIVEYEAR NOTES THE TREASURY WILL ANNOUNCE THE SIZE OF NEXT WEEK'S TWO AND FIVEYEAR NOTE AUCTIONS TOMORROW AS YIELDS ON LONGTERM SECURITIES FELL YESTERDAY AND SHORTTERM YIELDS ROSE THE GAP BETWEEN THE TWO NARROWED PRODUCING WHAT IS KNOWN AS A FLATTER YIELD CURVE THE SPREAD BETWEEN THE TWOYEAR NOTE AND THE 30YEAR BOND FELL TO 292 PERCENTAGE POINTS FROM 308 PERCENTAGE POINTS LATE FRIDAY LATE IN THE SESSION THE MARKET SHRUGGED OFF NEWS OF A STRONGERTHANEXPECTED REPORT ON STORE SALES JOHNSON REDBOOK SERVICE AN AFFILIATE OF LYNCH JONES & RYAN INC SAID CHAIN AND DEPARTMENT STORE SALES ROSE 45 DURING THE FIRST TWO WEEKS OF JANUARY FROM THE AVERAGE DECEMBER RATE THERE IS NO OFFICIAL ECONOMIC NEWS SLATED TO BE RELEASED TODAY THE FEDERAL GOVERNMENT WILL BE CLOSED FOR THE PRESIDENTIAL INAUGURATION THE TREASURY SOLD 2331 BILLION OF THREEMONTH AND SIXMONTH NOTES AT ITS WEEKLY AUCTION UP FROM 2128 BILLION AT LAST WEEK'S AUCTION THE AUCTION WHICH USUALLY OCCURS ON MONDAYS WAS HELD YESTERDAY BECAUSE THE TREASURY MARKET WAS CLOSED MONDAY THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 303 FOR A COUPON EQUIVALENT YIELD OF 310 DOWN FROM LAST WEEK'S AUCTION WHEN THE DISCOUNT RATE WAS 307 AND THE COUPON EQUIVALENT YIELD WAS 314 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 313 FOR A COUPON EQUIVALENT YIELD OF 322 DOWN FROM 319 AND 329 RESPECTIVELY LAST WEEK HERE ARE RESULTS OF THE AUCTION HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JANUARY 21 THE 13WEEK BILLS MATURE APRIL 22 1993 AND THE 26WEEK BILLS MATURE JULY 22 1993 NEW CORPORATE BONDS CONTINUED TO FLOOD INTO THE MARKET AS BORROWERS SOLD NEARLY 25 BILLION IN NEW DEBT AMONG SEASONED ISSUES INVESTMENTGRADE BONDS WERE MIXED WITH MOST INTERMEDIATE MATURITIES DOWN 1/8 POINT WHILE LONGERDATED PAPER GAINED 1/4 TO 1/2 POINT MEANWHILE JUNK BONDS ROSE 1/8 TO 1/4 POINT AS INVESTORS CONTINUED TO SEARCH FOR HIGHERYIELDING SECURITIES THE WIDE ARRAY OF CORPORATE ISSUERS RANGED FROM TIME WARNER WHICH HAD TAPPED THE MARKET LESS THAN TWO WEEKS AGO TO WHITMAN CORP AN INFREQUENT ISSUER WHICH SOLD 125 MILLION OF 10YEAR NOTES TO OVERWHELMING INVESTOR DEMAND DESPITE ABSORBING NEARLY 27 BILLION IN NEW CORPORATE BONDS SO FAR THIS YEAR UNDERWRITERS BELIEVE INVESTORS ARE STILL HUNGRY FOR MORE IF THE CURRENT PACE OF NEW ISSUANCE KEEPS UP IT IS POSSIBLE THAT IT WILL ECLIPSE THE MONTHLY RECORD OF 3681 BILLION SET IN JANUARY 1992 THE CORPORATE MARKET STILL HAS THE ABILITY TO ABSORB A DECENT AMOUNT OF SUPPLY SAID JAMES B QUIGLEY MANAGING DIRECTOR OF THE CORPORATE SYNDICATE DESK AT MERRILL LYNCH & CO TIME WARNER THE MEDIA AND ENTERTAINMENT COMPANY OFFERED A 1 BILLION TWOPART ISSUE OF NOTES THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC THE FIRST PART CONSISTING OF 500 MILLION OF NOTES DUE FEB 1 1998 WAS PRICED AT PAR TO YIELD 745 163 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE SECOND PART 500 MILLION OF NOTES DUE FEB 1 2000 WAS PRICED AT PAR TO YIELD 795 170 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE TRADERS AND SYNDICATE OFFICIALS SAID THE OFFERING WAS FAIRLY VALUED COMPARED WITH OUTSTANDING ISSUES BUT MANY WERE SURPRISED BY THE TIMING OF THE DEAL LESS THAN TWO WEEKS SINCE TIME WARNER SOLD 1 BILLION OF 20YEAR SENIOR NOTES PRICED AT PAR TO YIELD 9125 OR 175 BASIS POINTS ABOVE THE TREASURY 30YEAR BOND THE DEAL WILL GET DONE IT JUST WON'T BE A BLOWOUT SAID ONE CAPITAL MARKETS DIRECTOR UNDERWRITERS SAID THAT AS MUCH AS HALF THE ISSUE REMAINED UNSOLD BY THE DAY'S END TIME WARNER IS EXPECTED TO USE PROCEEDS FROM BOTH OFFERINGS TO REDEEM AN EXPENSIVE SERIES OF PREFERRED STOCK ISSUES MUNICIPAL BOND PRICES ENDED NARROWLY MIXED AS THE MARKET CONCENTRATED ON SOME 12 BILLION IN NEW ISSUES MEANWHILE NEW YORK CITY COMPTROLLER ELIZABETH HOLTZMAN FRESH FROM A TRIP TO JAPAN SAID FINAL PLANS ARE BEING MADE FOR THE CITY TO ISSUE 100 MILLION TO 150 MILLION OF TAXABLE SAMURAI BONDS SAMURAI BONDS ARE YENDENOMINATED SECURITIES SOLD BY ENTITIES IN JAPAN THE BONDS ARE SCHEDULED TO BE SOLD AS PART OF THE CITY'S NEXT PLANNED BOND ISSUE AT THE END OF FEBRUARY OR THE BEGINNING OF MARCH MS HOLTZMAN SAID NIKKO SECURITIES INC WILL UNDERWRITE THE SALE OF THE BONDS SHE SAID THE CITY ISSUES ABOUT 250 MILLION OF TAXABLE DEBT ANNUALLY WITH YIELDS ABOUT THREE PERCENTAGE POINTS HIGHER THAN THE YIELDS FOR COMPARABLE TREASURYS BECAUSE JAPANESE INTEREST RATES ARE LOWER THAN US RATES THE CITY IS EXPECTING YIELDS TO BE ABOUT 010 TO 015 PERCENTAGE POINT LOWER THAN THOSE ON COMPARABLE DOLLARDENOMINATED TAXABLE CITY BONDS MS HOLTZMAN SAID THE CITY IS LIKELY TO ISSUE TWO MATURITIES OF THE BONDS BOTH OF 10 YEARS OR LESS THE CITY HAS CREATED A SEPARATE ENTITY THE NEW YORK CITY SAMURAI FUNDING CORP TO HANDLE THE COMPLICATED CURRENCY AND INTERESTRATE SWAPS NEEDED TO COMPLETE THE TRANSACTION THE SAMURAI ISSUE WOULD NOT BE THE CITY'S FIRST FORAY INTO THE JAPANESE CREDIT MARKETS IN THE PAST THE CITY HAS ISSUED A TOTAL OF 24 MILLION OF DOLLARDENOMINATED BONDS IN THE JAPANESE MARKET MORTGAGE SECURITIES PRICES ENDED MIXED FEDERAL HOME LOAN MORTGAGE CORP AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 8 SECURITIES ROSE 1/8 POINT FEBRUARY DELIVERY 7 1/2 MORTGAGE SECURITIES ISSUED BY THE AGENCIES WERE UP 1/32 AT 100 23/32 AND 100 16/32 RESPECTIVELY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 1/2 SECURITIES WERE UP 2/32 AT 100 19/32 HIGHERCOUPON ISSUES WERE A BIT LOWER THE RECENT DECLINE IN BOND YIELDS IS UNNERVING MANY MORTGAGEMARKET PARTICIPANTS LOWER BOND YIELDS CAN PULL DOWN MORTGAGE RATES SPURRING MORTGAGE REFINANCINGS AND HOME SALES AND BOOSTING PREPAYMENTS ON SECURITIES HOWEVER INVESTORS ARE SHARPLY DIVIDED ON PRECISELY HOW MUCH OF A THREAT PREPAYMENTS REPRESENT ONE CAMP EXPECTS AN ACCELERATION IN PREPAYMENTS WHILE ANOTHER IS SKEPTICAL THAT BOND YIELDS OR MORTGAGE RATES WILL DECLINE ENOUGH TO MAKE MUCH DIFFERENCE ISSUERS ARE TAKING ADVANTAGE OF THAT DIVERGENCE OF VIEWS BY ISSUING MORE STRIPPED MORTGAGE SECURITIES WHICH PROVIDE WAYS TO WAGER ON EITHER SCENARIO MORE THAN 55 BILLION OF STRIPPED AND STRIPPABLE MORTGAGE SECURITIES HAVE BEEN PRICED IN THE PAST WEEK AMONG YESTERDAY'S DEALS FANNIE MAE PRICED A 253 BILLION STRIPPED MORTGAGE BACKED SECURITIES TRUST 203 THE LARGEST STRIPS DEAL ON RECORD FREDDIE MAC ANNOUNCED A 1 BILLION GOLD MACS MODIFIABLE AND COMBINABLE SECURITIES SERIES 147 DEAL SANDY GONZALEZ CONTRIBUTED TO THIS ARTICLE 9301200051 930120 BUSH BORROWS 100000 FOR HIS MOVING EXPENSES WASHINGTON BEFORE HEADING OUT OF THE WHITE HOUSE AND BACK TO HOUSTON PRESIDENT BUSH HEADED FOR THE BANK ON HIS LAST FULL DAY IN OFFICE MR BUSH RELEASED A FINANCIAL DISCLOSURE FORM SHOWING THAT HE BORROWED AS MUCH AS 100000 AT THE PRIME RATE FROM A HOUSTON BANK THIS YEAR AIDES SAID THE MONEY WILL HELP PAY EXPENSES ASSOCIATED WITH HIS RETURN TO PRIVATE LIFE MR AND MRS BUSH ARE BUILDING A HOME IN HOUSTON THE FORM SHOWS MR BUSH'S NET WORTH AT MORE THAN 2 MILLION INCLUDING HIS HOME IN KENNEBUNKPORT MAINE VALUED AT MORE THAN 1 MILLION AND THE BLIND TRUST HE ESTABLISHED WHEN HE BECAME VICE PRESIDENT 11 YEARS AGO WHICH IS ALSO VALUED AT MORE THAN 1 MILLION ASIDE FROM THE LOAN MR BUSH'S FINAL DISCLOSURE FORM SHOWS HE ACCEPTED NEARLY 53000 IN GIFTS IN THE PAST YEAR THEY INCLUDE A PAIR OF SHOTGUNS VALUED AT 22000 A FRAMED PHOTOGRAPH FROM QUEEN ELIZABETH 115 A BARBECUE PIT AND VIDEO CAMERA FROM THE HOUSTON BREAKFAST ASSOCIATION A GARDEN BENCH FROM MEMBERS OF THE SENATE LADIES LUNCHEON AND THREE SETS OF GOLF CLUBS 9301200050 930120 WELLS FARGO REPORTS PROFIT FOR 4TH PERIOD STOCK RISES 15 ON REVERSAL OF YEAREARLIER LOSS OTHER BANKS POST GAINS BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL WELLS FARGO & CO STOCK SURGED 15 ON SHARPLY IMPROVED FOURTHQUARTER RESULTS REFLECTING INVESTOR HOPES THAT THE REAL ESTATE DEBACLE IS ENDING FOR CALIFORNIA BANKS AND THRIFTS AND TRIGGERING A JUMP IN STOCKS OF FINANCIAL INSTITUTIONS NATIONWIDE OTHER BANKS ALSO REPORTED STRONG FOURTHQUARTER EARNINGS AIDED BY WIDER NET INTEREST MARGINS AND PROGRESS IN CREDIT QUALITY THAT IS SIX MONTHS AHEAD OF SOME ANALYSTS' EXPECTATIONS CHASE MANHATTAN CORP POSTED A 25 GAIN IN NET INCOME AND BANC ONE CORP'S EARNINGS ROSE 28 CHEMICAL BANKING CORP AND FIRST INTERSTATE BANCORP BOTH REPORTED A PROFIT REVERSING YEAREARLIER LOSSES AFTER MUCH DELAY BANKS SEEM TO HAVE EMBRACED THE NOTION THAT REAL ESTATE VALUES AREN'T GOING TO REBOUND SOON AND HAVE BEGUN TO LIQUIDATE LOADS OF COMMERCIAL PROPERTY AT BARGAIN PRICES MEANWHILE FORMERLY RELUCTANT INSTITUTIONAL INVESTORS ARE BUYING REAL ESTATE ASSETS AT DISCOUNTS OF 50 OR MORE FROM THE STANDPOINT OF THE BANKS IT LOOKS LIKE THE REAL ESTATE BUST IS ENDING AT LEAST AS FAR AS DEALING WITH THEIR COSTS OF COMMERCIAL REAL ESTATE PROBLEMS SAID THOMAS BROWN AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES AND WELLS FARGO IS A BELLWETHER BUT EUPHORIC INVESTORS MAY HAVE MISINTERPRETED THE EXTENT OF WELLS FARGO'S PROGRESS ALTHOUGH ITS PROBLEM ASSETS DECLINED 10 THE VAST MAJORITY OF HOLDINGS SOLD WERE BUSINESS LOANS NOT REAL ESTATE LOANS SAID FIRST BOSTON ANALYST THOMAS HANLEY WELLS ALSO STILL HAS A RELATIVELY HIGH 52 LEVEL OF PROBLEM ASSETS AS A PERCENTAGE OF TOTAL ASSETS ON THE NEW YORK STOCK EXCHANGE WELLS FARGO'S SHARES WERE QUOTED AT 99 UP 13 CHEMICAL ROSE 375 CENTS TO 41625 BANC ONE WAS UP 75 CENTS TO 5250 AND FIRST INTERSTATE SHARES REACHED 52 UP 2125 MEANWHILE CHASE FELL 50 CENTS TO 30 ON THE BIG BOARD THE SAN FRANCISCOBASED COMPANY'S LOANLOSS PROVISIONS OF 300 MILLION WHICH ARE STILL WELL ABOVE THE 75 MILLION RANGE NORMAL FOR THE BANK WERE DOWN FROM 400 MILLION IN THE THIRD QUARTER AND 700 MILLION A YEAR EARLIER INSTEAD OF SELLING OFF BAD ASSETS IN BULK AS SEVERAL LARGE BANKS HAVE DONE WELLS WHICH REPORTED A LOSS FOR THE YEAREARLIER PERIOD HAS PURSUED A LESS COSTLY STRATEGY OF AGGRESSIVELY DUMPING INDIVIDUAL LOANS NONPERFORMING ASSETS INCLUDING FORECLOSED PROPERTY FELL TO 265 BILLION FROM 284 BILLION AT THE END OF THE THIRD QUARTER CONSISTENTLY STRONG OPERATING PROFIT HAS ALSO HELPED THE BANK COPE WITH ITS PROBLEMS WELLS BENEFITED FROM A RISE IN ITS ALREADY WIDE NET INTEREST MARGIN TO 572 FROM 522 A YEAR EARLIER AS WELL AS AN 8 DROP IN NONINTEREST EXPENSES THE LOS ANGELESBASED BANK REPORTED A 32 DROP IN PROBLEM ASSETS TO 751 MILLION FROM 11 BILLION AT THE END OF THE THIRD QUARTER AND A PEAK OF 22 BILLION IN MID1989 LOANLOSS PROVISIONS FELL BY MORE THAN HALF TO 56 MILLION FROM 134 MILLION A YEAR EARLIER THE COMPANY SAID THIS YEAR'S PROFIT SHOULD SURPASS 1992'S AND THAT REVENUE GROWTH WILL BE ITS PRIMARY FOCUS NOW THAT IT HAS ALLEVIATED LONGSTANDING CREDIT QUALITY CONCERNS PARTLY AS A RESULT OF ITS HOUSECLEANING NONINTEREST EXPENSES FELL 215 TO 5288 MILLION FIRST INTERSTATE'S NET INTEREST MARGIN NARROWED SLIGHTLY TO 471 ALTHOUGH NET INTEREST INCOME ROSE TO 4972 MILLION UP 18 MILLION FROM A YEAR EARLIER NONINTEREST INCOME FELL 17 TO 219 MILLION IN THE PERIOD OPERATING EARNINGS FOR THE NEW YORKBASED BANK WERE AIDED BY AN 82 JUMP IN REVENUE FROM TRADING ACTIVITIES TO 229 MILLION FROM 126 MILLION A YEAR EARLIER SPECIFICALLY GAINS IN FOREIGN EXCHANGE TRADING WHICH MORE THAN DOUBLED TO 156 MILLION FROM 64 MILLION BOLSTERED RESULTS IN THE TRADING BUSINESS NET INTEREST INCOME INCREASED 5 TO 123 BILLION FROM 117 BILLION AS THE YIELD ON INTERESTEARNING ASSETS ROSE TO 401 FROM 376 AT THE SAME TIME CHEMICAL'S LOANLOSS PROVISIONS DECLINED TO 315 MILLION FROM 330 MILLION IN THE THIRD QUARTER AND 450 MILLION A YEAR EARLIER NONPERFORMING ASSETS AS OF DEC 31 FELL TO 609 BILLION FROM 659 BILLION AT THE END OF THE THIRD QUARTER EARNINGS FOR THE NEW YORK BANK WERE BOLSTERED BY GAINS IN NET INTEREST INCOME AND FOREIGN EXCHANGE TRADING REVENUE DECLINES IN LOANLOSS PROVISIONS ALSO HELPED RESULTS BUT THE GAINS WERE SOMEWHAT OFFSET BY A DECLINE IN REVENUE FROM INVESTMENTS IN SECURITIES AND BY A 3 INCREASE IN OPERATING EXPENSES THE COMPANY SAID CHASE SAID IT EXPECTS LOANLOSS PROVISIONS TO REMAIN HIGH AS WEAK ECONOMIC CONDITIONS CONTINUE IN THE US AND AROUND THE WORLD CHASE SAID ITS DOMESTIC COMMERCIAL REAL ESTATE EXPOSURE WHICH HAMPERED EARNINGS GROWTH IN THE PAST FELL TO 67 BILLION AS OF DEC 31 FROM 86 BILLION A YEAR EARLIER THE COMPANY SAID IT WILL CONTINUE TO SEEK WAYS TO REDUCE ITS DOMESTIC REAL ESTATE LOAN PORTFOLIO THE COLUMBUS OHIO SUPERREGIONAL BANK CITED INCREASED LOAN DEMAND IN SOME MARKETS FOR ITS EARNINGS GROWTH IN THE QUARTER RETAIL AND MIDDLEMARKET LENDING INCLUDING CREDIT CARDS HAS AT LEAST MAINTAINED STRENGTH DURING THE RECENT RECESSION WE'VE STARTED TO SEE AN UPTURN IN A NUMBER OF THOSE MARKETS IN THE LAST SIX TO NINE MONTHS A BANC ONE SPOKESMAN SAID FOURTHQUARTER RESULTS INCLUDED 27 MILLION OF NONRECURRING EXPENSES RELATING TO BANC ONE'S ACQUISITION OF TEAM BANCSHARES DALLAS BANC ONE COMPLETED ACQUISITIONS OF TEAM BANCSHARES AND OF AFFILIATED BANKSHARES OF COLORADO DURING THE QUARTER NONPERFORMING ASSETS FELL TO 3805 MILLION FROM 485 MILLION A YEAR EARLIER AND ARE AT THEIR LOWEST LEVEL IN THREE YEARS AS A PERCENTAGE OF TOTAL LOANS LOANLOSS PROVISIONS DECLINED 33 TO 1143 MILLION SEPARATELY BANC ONE SAID IT INCREASED ITS QUARTERLY DIVIDEND 94 TO 35 CENTS A SHARE FROM 32 CENTS FIGURES IN PARENTHESES ARE LOSSES 9301200049 930120 IRS PLANS TO EASE RULES ON TAXING SPONSOR PAYMENTS BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE INTERNAL REVENUE SERVICE ENDED A YEAR OF SUSPENSE FOR NONPROFIT ORGANIZERS OF SPORTS AND CULTURAL EVENTS BY PROPOSING RELAXED GUIDELINES ON WHEN IT WILL CONSIDER PAYMENTS FROM CORPORATE SPONSORS TO BE TAXABLE INCOME THE PROPOSED REGULATIONS REPRESENT A SIGNIFICANT EASING OF STRINGENT AUDIT RULINGS THAT THE IRS MADE LAST YEAR THOSE GUIDELINES WOULD HAVE IMPOSED A 34 TAX ON THE PAYMENTS THAT TAXEXEMPT GROUPS SUCH AS ORGANIZERS OF COLLEGE BOWL GAMES RECEIVE FROM COMPANIES WHO SPONSOR THEM SUCH AS MOBIL CORP IN THE CASE OF THE MOBIL COTTON BOWL THE PROPOSED REGULATIONS ALLOW EXEMPT ORGANIZATIONS TO OFFER AN ACKNOWLEDGMENT OF A COMPANY'S SPONSORSHIP WITHOUT SUFFERING TAX CONSEQUENCES BUT NOT A BUSINESS SERVICE SUCH AS ADVERTISING FOR EXEMPT GROUPS THE TRICK WILL BE FIGURING OUT THE DIFFERENCE BETWEEN WHAT CONSTITUTES A PERMISSIBLE ACKNOWLEDGMENT AND WHAT IS AN AD FOR EXAMPLE DISPLAYING A LOGO OR ALLOWING PRODUCT SAMPLING IN RETURN FOR SPONSORSHIP FEES IS CONSIDERED AN ACCEPTABLE NONTAXABLE ACKNOWLEDGMENT THE REGULATIONS SAY BUT WHEN THE SPONSOR GETS ADVERTISING IN EXCHANGE FOR ITS CONTRIBUTION THE PAYMENT TO THE EXEMPT GROUP WILL BE CONSIDERED TAXABLE INCOME THE REGULATIONS SAY EXAMPLES OF THIS ACCORDING TO THE IRS ARE SPONSORSHIP PAYMENTS THAT HINGE ON THE SIZE OF THE AUDIENCE INCLUDING RATINGS OF TELEVISED EVENTS ALSO INCLUDED UNDER THIS DEFINITION OF ADVERTISING WOULD BE A PROMOTION TO BUY THE CORPORATION'S PRODUCT THAT IS EXCELLENT NEWS FOR MOST SPORTS EVENTS ORGANIZERS SAID ALAN FRIEDMAN EDITOR OF THE CHICAGO NEWSLETTER TEAM MARKETING REPORT NOTING THAT SIGNS DISPLAYING CORPORATE LOGOS AT TELEVISED EVENTS ARE A MAJOR REASON WHY ADVERTISERS SPONSOR THEM I'M SURPRISED HE SAID TO ME THAT CLEARLY IS A COMMUNICATION DESIGNED STRICTLY FOR COMMERCIAL EXPOSURE IN MY MIND IT'S NO DIFFERENT FROM THE BILLBOARD OUTSIDE MY WINDOW LAST YEAR THE IRS TOLD ORGANIZERS OF THE MOBIL COTTON BOWL AND THE JOHN HANCOCK BOWL THAT THE MILLIONS OF DOLLARS IN SPONSORSHIP FEES IT RECEIVED FROM CORPORATIONS WOULD BE CONSIDERED TAXABLE REVENUE UNDER NEW AUDIT GUIDELINES THE GUIDELINES ALSO COULD HAVE APPLIED TO SPONSORSHIPS OF PUBLIC BROADCASTING PROGRAMS AND OTHER NATIONAL EVENTS SUCH AS ARTS FESTIVALS AS WELL AS TO LOCAL SPONSORSHIPS OF SPORTS LEAGUES AND STATE FAIRS A BROAD INTERPRETATION WOULD HAVE IMPOSED SUCH A TAX ON THE SPONSORSHIP MONEY OLYMPICS ORGANIZERS IN THE US COLLECTED FROM CORPORATE SPONSORS THE PROPOSED REGULATIONS WOULD SUPERSEDE THOSE RULINGS AN IRS SPOKESMAN SAID THE LATEST REGULATIONS ARE SUBJECT TO PUBLIC COMMENT BEFORE BECOMING PERMANENT THE CONGRESSIONAL JOINT TAX COMMITTEE LAST YEAR ESTIMATED THAT LEGISLATION SIMILAR TO THE LATEST PROPOSAL WOULD COST THE GOVERNMENT 52 MILLION OVER FIVE YEARS IN LOST TAX REVENUES THAT LEGISLATION DIED AS THE RESULT OF A PRESIDENTIAL VETO 9301200047 930120 TIME WARNER TO RAISE 1 BILLION IN NOTE OFFER NEW YORK TIME WARNER INC IS RAISING 1 BILLION THROUGH AN OFFER OF SENIOR NOTES WITH THE PROCEEDS TO BE USED TO REDEEM OR REPURCHASE PART OF AN EXPENSIVE SERIES OF PREFERRED STOCK ISSUES THE OFFERING THE LATEST IN A SPATE OF FINANCING MOVES BY THE DEBTLADEN ENTERTAINMENT AND PUBLISHING COMPANY IN RECENT WEEKS IS PART OF A CONTINUING EFFORT TO REPAIR ITS BALANCE SHEET TIME WARNER SAID IT WILL OFFER 500 MILLION OF 745 SENIOR NOTES DUE 1998 AND 500 MILLION OF 795 SENIOR NOTES DUE 2000 THE 1 BILLION WILL BE USED TO BUY BACK OR REDEEM THE COMPANY'S PAYINKIND SERIES D PREFERRED SHARES WHICH HAVE AN 11 INTEREST RATE OR ITS 875 SERIES C ISSUE THE TWO ISSUES TOTAL 65 BILLION 9301200046 930120 JUDGE BARS LAND TRANSFER FOR NUCLEAR WASTE DUMP SAN FRANCISCO A FEDERAL COURT HERE EFFECTIVELY DOOMED AN ATTEMPT BY THE INTERIOR DEPARTMENT TO PUSH THROUGH A LAND TRANSFER FOR A CONTROVERSIAL NUCLEARWASTE DUMP IN THE CALIFORNIA DESERT JUDGE MARILYN PATEL EXTENDED A TEMPORARY RESTRAINING ORDER BLOCKING THE TRANSFER OF A PATCH OF FEDERAL LAND KNOWN AS WARD VALLEY TO THE STATE THE STATE SUPPORTS AN EFFORT TO BUILD A LOWLEVEL NUCLEAR WASTE DUMP THERE BUT THE PROPOSAL HAS MET FIERCE PUBLIC RESISTANCE EARLIER THIS MONTH INTERIOR SECRETARY MANUEL LUJAN SAID HE PLANNED TO TRANSFER THE LAND TO THE STATE A KEY REQUIREMENT FOR ADVANCING THE DUMP PROJECT CRITICS OF THE PROPOSED DUMP ACCUSED MR LUJAN WHO LEAVES OFFICE TODAY OF CIRCUMVENTING NORMAL PROCEDURES TO RAM THE TRANSFER THROUGH BEFORE LEAVING HIS POST DUMP OPPONENTS SUED ALLEGING THAT THE LAND TRANSFER DIDN'T COMPLY WITH THE ENDANGERED SPECIES ACT AMONG OTHER LAWS JUDGE PATEL'S DECISION MEANS THE THORNY ISSUE OF LOWLEVEL NUCLEARWASTE DISPOSAL WILL FALL INTO THE LAP OF THE CLINTON ADMINISTRATION THAT'S WHERE DUMP OPPONENTS WANTED IT BECAUSE THEY BELIEVE MR CLINTON'S ADMINISTRATION WILL BE MORE SYMPATHETIC TO THEIR CAUSE A FEDERAL LAW PASSED IN 1980 REQUIRED STATES TO SET UP LOWLEVEL NUCLEAR DUMPS BUT NOT ONE HAS YET BEEN BUILT LARGELY BECAUSE OF PUBLIC OPPOSITION 9301200045 930120 POLITICS & POLICY BAGHDAD CALLS A CEASEFIRE AS GOOD WILL' IRAQ SAYS IT WILL STOP FIRING ON ALLIED PATROL PLANES US WILL WAIT AND SEE BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER A WEEK OF CONFRONTATION IRAQ UNILATERALLY ANNOUNCED THAT IT WOULD STOP FIRING ON COALITION AIRCRAFT PATROLLING THE NOFLY ZONES IN NORTHERN AND SOUTHERN IRAQ THE CEASEFIRE WAS SET TO BEGIN AT MIDNIGHT LAST NIGHT THE IRAQI GOVERNMENT CALLED THE MOVE A GESTURE OF GOOD WILL TOWARD THE CLINTON ADMINISTRATION AND THROUGH HIM THE AMERICAN PEOPLE AFTER THE IRAQI ANNOUNCEMENT A UNITED NATIONS DISARMAMENT OFFICIAL SAID BAGHDAD ALSO HAD SENT A LETTER SAYING IT WOULD ALLOW UN WEAPONS INSPECTIONS FLIGHTS TO RESUME THE UN ACCEPTED THE IRAQI PLAN THE IRAQI ACTIONS RAISE THE PROSPECT THAT MR CLINTON WHO TAKES OFFICE TODAY COULD SOON RECEIVE CONCESSIONARY OFFERS FROM IRAQ BUT A SPOKESMAN FOR MR CLINTON REACTED SKEPTICALLY TO THE ANNOUNCEMENT SAYING THAT IRAQ MUST GO FURTHER AND FULLY COMPLY WITH THE TERMS OF THE CEASEFIRE THAT ENDED THE PERSIAN GULF WAR UNDER THOSE TERMS IRAQ MUST AMONG OTHER THINGS ALLOW UN INSPECTORS FULL ACCESS TO IRAQ'S WEAPONS OF MASS DESTRUCTION RESPECT ITS BORDER WITH KUWAIT AND STOP REPRESSING ITS OWN CITIZENS WHAT WE NEED TO DO NOW IS SEE IRAQ CHANGE ITS BEHAVIOR SAID CLINTON COMMUNICATIONS DIRECTOR GEORGE STEPHANOPOULOS THE WHITE HOUSE ON THE LAST FULL DAY OF THE BUSH ADMINISTRATION ISSUED A SIMILAR STATEMENT LAURIE MYLROIE OF THE WASHINGTON INSTITUTE FOR NEAR EAST POLICY DESCRIBED THE IRAQI ANNOUNCEMENT AS THE FIRST STEP IN A NEW PEACE OFFENSIVE BY SADDAM HUSSEIN BUT SHE NOTED THAT THE CEASEFIRE ANNOUNCEMENT FALLS WELL SHORT OF RECOGNIZING THE UN RESOLUTIONS SHE SAID THAT SADDAM HUSSEIN CAN'T COMPLY WITH THEM AND SURVIVE UNLESS HE REPRESSES HIS POPULATION SHE ARGUED FOR EXAMPLE HE'LL BE OVERTHROWN SHE ARGUED THE CLINTON ADMINISTRATION SHOULD TAKE A TOUGH STANCE IF IT APPEARS EAGER TO DEAL SHE SAID THE COALITION AGAINST SADDAM HUSSEIN WOULD SOON SHATTER THE IRAQI MOVE CAME AFTER A DAY IN WHICH MILITARY ACTIVITY LESSENED AND DIPLOMATIC ACTIVITY GREW BEFORE BAGHDAD'S ANNOUNCEMENT THE PENTAGON REPORTED THREE INCIDENTS IN WHICH IRAQI FORCES FIRED MISSILES OR ANTIAIRCRAFT ARTILLERY IN THE NORTHERN IRAQ NOFLY ZONE ABOVE THE 36TH PARALLEL IN THE MOST SIGNIFICANT ACTION AT ABOUT 530 AM EST TWO US F16S DROPPED FOUR CLUSTER BOMBS ON AN ANTIAIRCRAFT BATTERY THAT FIRED ON THEM THE PENTAGON SAID US MILITARY OFFICIALS ALSO INDICATED THAT THE US MOVED THE AIRCRAFT CARRIER KENNEDY AND TWO GUIDEDMISSILE CRUISERS TO THE EASTERN MEDITERRANEAN SEA MEANWHILE THE UN SECURITY COUNCIL MET TO CONSIDER SENDING ABOUT 3000 ARMED PEACEKEEPERS TO KUWAIT TO BOLSTER THE SMALL UN FORCE PATROLLING THE DEMILITARIZED ZONE ALONG THAT COUNTRY'S BORDER WITH IRAQ 9301200044 930120 TECHNOLOGY MICROSOFT'S MARKET SHARE INCREASED TO 44 IN 1992 SAN JOSE CALIF MICROSOFT CORP INCREASED ITS HEGEMONY IN PERSONALCOMPUTER SOFTWARE LAST YEAR BOOSTING ITS SHARE OF THE RAPIDLY GROWING MARKET TO 44 WHILE ITS CLOSEST COMPETITORS ESSENTIALLY HELD THEIR POSITIONS OR LOST GROUND ACCORDING TO A SURVEY BY DATAQUEST A MARKET RESEARCH FIRM PCSOFTWARE REVENUE GREW 30 IN 1992 TO 76 BILLION FROM 59 BILLION IN 1991 MICROSOFT'S SHARE OF THAT MARKET GREW TO 44 IN 1992 FROM 29 IN 1991 IN SECOND PLACE WAS LOTUS DEVELOPMENT CORP WITH A MARKET SHARE LAST YEAR OF 117 DOWN FROM 13 WHILE NO 3 WORDPERFECT CORP KEPT ITS 8 SHARE THE TOP FIVE COMPANIES IN 1992 CONTROLLED NEARLY 74 OF THE MARKET UP FROM 60 THE YEAR BEFORE LARGE VENDORS CONTINUE TO DEVOUR THE COMPETITION THROUGH ACQUISITION SAID DATAQUEST ANALYST BILL KESSELRING HE SAID MICROSOFT WILL CONTINUE TO INCREASE ITS MARKET SHARE BUT AT A SLOWER PACE AS ITS COMPETITORS INTRODUCE REVISED VERSIONS OF THEIR PRODUCTS 9301200043 930120 BUSINESS BRIEF HSBC HOLDINGS PLC UNIT SEEKS US APOLOGY FOR SEIZURE OF SOME FUNDS MARINE MIDLAND BANK NA AND ITS PARENT HONGKONG & SHANGHAI BANKING CORP ARE SEEKING A WRITTEN APOLOGY FROM THE US GOVERNMENT CLAIMING PROSECUTORS WRONGLY SEIZED 47 MILLION FROM THE HONG KONG BANK'S ACCOUNT AT MARINE MIDLAND HONKONG & SHANGHAI BANKING IS THE MAIN UNIT OF HSBC HOLDINGS PLC IN COURT PAPERS FILED TWO WEEKS AGO FEDERAL PROSECUTORS IN MANHATTAN SAID THAT THE MARINE MIDLAND ACCOUNT WHICH IS IN THE NAME OF HONGKONG BANK PANAMA SA WAS BEING USED ILLEGALLY TO LAUNDER MILLIONS OF DOLLARS IN DRUG PROFITS PROSECUTORS SAID THE ACCOUNT IN NEW YORK WAS PART OF AN ELABORATE SCHEME INVOLVING THE TRANSFER OF POSTAL AND OTHER KINDS OF MONEY ORDERS MARINE MIDLAND BASED IN BUFFALO NY AND ITS PARENT SAID IN THEIR LAWSUIT THEY WEREN'T AWARE THAT ANY OF THE FUNDS WERE RELATED TO LAUNDERING 9301200042 930120 BUSINESS BRIEF JONES INTERCABLE INC LOSS WIDENED IN 2ND PERIOD AFTER EXTRAORDINARY CHARGE JONES INTERCABLE INC ENGLEWOOD COLO REPORTED A WIDER LOSS LARGELY BECAUSE OF AN EXTRAORDINARY CHARGE ON INCREASED REVENUE AND CASH FLOW FOR THE FISCAL SECOND QUARTER THE CABLE OPERATOR HAD A LOSS OF 104 MILLION OR 80 CENTS A SHARE IN THE QUARTER ENDED NOV 30 COMPARED WITH A LOSS OF 97 MILLION OR 80 CENTS A SHARE FOR THE SAME PERIOD A YEAR EARLIER THE LATEST PERIOD'S RESULTS INCLUDE AN EXTRAORDINARY PRETAX LOSS OF 795900 OR SIX CENTS A SHARE FROM THE REDEMPTION OF 75 MILLION IN DEBENTURES REVENUE FOR THE QUARTER ROSE 15 TO 299 MILLION CASH FLOW WHICH CABLE OPERATORS USE AS THE PRIMARY INDICATOR OF PERFORMANCE INCREASED 13 TO 138 MILLION JONES INTERCABLE ONE OF THE 10 LARGEST CABLE OPERATORS IN THE US CITED INCREASED MANAGEMENT FEES AND SUBSCRIBER FEES FROM ITS CABLE SYSTEMS THE SECOND QUARTER RESULTS ALSO INCLUDE THE SALE OF THE COMPANY'S ALEXANDRIA VA AND ONALASKA WIS CABLE SYSTEMS 9301200041 930120 GREAT EXPECTATIONS AS CLINTON TAKES OVER PUBLIC'S HIGH HOPES COULD HELP HIS CAUSE RIDING A WAVE OF OPTIMISM HE HOLDS MUCH LEVERAGE OVER A REVILED CONGRESS A HONEYMOON OR ICY FALL BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LYNN BILLY EARLEY 104 YEARS OLD HAS NEVER BEFORE TRAVELED TO A PRESIDENTIAL INAUGURATION AND IN THE LAST FOUR DECADES SHE HAS NEVER SEEN A PRESIDENT TO MATCH HER PERSONAL FAVORITE HARRY TRUMAN YET MRS EARLEY WHO WAS 58 THE YEAR BILL CLINTON WAS BORN SITS IN A RAMADA INN HOTEL ROOM HERE WAITING WITH HOPEFUL ENTHUSIASM TO WATCH HIM SWORN IN AS PRESIDENT TODAY AT THE CAPITOL IT'S TIME FOR THE YOUNGER PEOPLE TO SEE WHAT THEY CAN DO SAYS MRS EARLEY AN IMPISH ARIZONAN THE NO 1 TASK FOR MR CLINTON SHE SAYS IS TO GET AMERICANS TO MAKE A FEW SACRIFICES AMID ALL THE TURMOIL OF A BUMPY TRANSITION AND A FIGHT BETWEEN THE US AND IRAQ MRS EARLEY TYPIFIES THE MOST POWERFUL WEAPON BILL CLINTON HOLDS AS HE BECOMES THE NATION'S 42ND PRESIDENT WHILE THE WASHINGTON ESTABLISHMENT HAS BEEN NIPPING AT THE NEW PRESIDENT'S HEELS FOR RENEGING ON CAMPAIGN PROMISES AND FOR DELAYS IN ASSEMBLING HIS TEAM ALL AVAILABLE EVIDENCE SUGGESTS THE PUBLIC IS FAR MORE WILLING TO GIVE HIM THE BENEFIT OF THE DOUBT EVEN REPUBLICANS SENSE THAT THE NATION IS ALMOST DESPERATE FOR THINGS TO START WORKING BETTER AND IS IN A MOOD TO SUSPEND JUDGMENT AND ADOPT AN OPTIMISTIC OUTLOOK THE COUNTRY AS A WHOLE IN MY PUBLIC LIFE HAS NEVER EVER MORE WANTED A SUCCESSFUL PRESIDENCY SAYS REP JIM LEACH A REPUBLICAN FROM IOWA WHO FIRST WORKED IN WASHINGTON DURING THE JOHNSON ADMINISTRATION THE COUNTRY ALWAYS HAS A VESTED INTEREST IN A SUCCESSFUL PRESIDENCY BUT AT THIS TIME IT PARTICULARLY WANTS IT FOR MR CLINTON THIS NATIONAL SENSE OF HOPE IS A VALUABLE BUT HIGHLY PERISHABLE COMMODITY IT SUGGESTS HE HAS AN OPPORTUNITY IN THE NEXT FEW WEEKS TO PERSUADE AMERICANS TO SET ASIDE THEIR CYNICISM AND MAKE SOME MODEST SACRIFICES TO FIX THE COUNTRY'S FISCAL DISARRAY AND BEGIN TAKING STEPS TOWARD THE FUTURE IF MR CLINTON IS EVER TO CONVINCE AMERICANS THAT THEY MUST ACCEPT REDUCTIONS IN GOVERNMENT MEDICAL PROGRAMS LIMITS IN SOCIAL SECURITY BENEFITS OR IMPOSITION OF HIGHLY CONTROVERSIAL ENERGY TAXES HE ISN'T LIKELY TO FIND A BETTER TIME THAN NOW TO MAKE THE ARGUMENT BUT IN RETURN FOR THIS PUBLIC GOODWILL VOTERS ALSO SEEM TO EXPECT MR CLINTON TO SWIFTLY SHOW SOME SINCERE EFFORTS AT PROBLEMSOLVING RATHER THAN PROBLEMAVOIDANCE FAILURE TO DO SO COULD ABRUPTLY END THE HONEYMOON I THINK PEOPLE WANT A NEW BEGINNING FOR THE COUNTRY AND AS FAR AS THEY'RE CONCERNED THE WORLD STARTS JAN 20 SAYS REP DAN GLICKMAN A KANSAS DEMOCRAT WHO HAS JUST RETURNED FROM MEETING WITH CONSTITUENTS IN HIS DISTRICT AROUND WICHITA BUT THEY ARE CONCERNED ABOUT THE DEFICIT WHICH SEEMS TO BE A MUCH MORE POWERFUL ISSUE THAN EVEN THOSE IN WASHINGTON REALIZE MR GLICKMAN SENSES THAT ROSS PEROT'S CANDIDACY HAS SOWN A POWERFUL FEELING AT THE GRASS ROOTS THAT WASHINGTON MUST ASSAULT THE DEFICIT AS A SIGN THAT THE NATION IS RETURNING TO FISCAL SOLVENCY THE GOOD NEWS FOR MR CLINTON IS A RICH LODE OF EVIDENCE THAT NEITHER BACKTRACKING ON CAMPAIGN PROMISES NOR CRITICISM OF CABINET APPOINTEES ACCUSED OF ETHICAL LAPSES HAS DENTED THE PUBLIC'S OPTIMISM THAT HE CAN CHANGE THE COUNTRY FOR THE BETTER IN A NEWSWEEK SURVEY RELEASED THIS WEEK 68 OF THOSE POLLED APPROVED OF MR CLINTON'S HANDLING OF THE TRANSITION EVEN THOUGH MOST DOUBTED HE WOULD DELIVER ON HIS CAMPAIGN PROMISE TO IMMEDIATELY CUT MIDDLECLASS TAXES AMERICANS' OPINION ABOUT MR CLINTON'S HONESTY EVEN SEEMS TO HAVE IMPROVED A TIME MAGAZINE/CNN POLL FOUND THAT 69 OF THOSE SURVEYED NOW SAY MR CLINTON IS HONEST AND TRUSTWORTHY ENOUGH TO BE PRESIDENT THAT COMPARES WITH 49 TWO WEEKS BEFORE ELECTION DAY MORE IMPORTANT TO THE NEW PRESIDENT IS A DISCERNIBLE SURGE IN CONSUMER CONFIDENCE THAT COULD TRANSLATE INTO ACCELERATED ECONOMIC ACTIVITY AFTER MORE THAN A YEAR OF UNINSPIRING READINGS IN ITS CONFIDENCE SURVEY THE CONFERENCE BOARD FOUND VERY HEARTENING GAINS IN NOVEMBER AND DECEMBER SAYS FABIAN LINDEN HEAD OF CONSUMER RESEARCH FOR THE NEW YORKBASED BUSINESS GROUP MOST SIGNIFICANT THE SURGE IN CONFIDENCE CAME NOT SO MUCH IN THE PUBLIC'S VIEW OF THE CURRENT ECONOMIC SITUATION BUT IN ITS EXPECTATIONS FOR AN IMPROVED SITUATION SOON IN THE TWO MONTHS SINCE THE ELECTION MR LINDEN SAYS THE BOARD'S BAROMETER OF PUBLIC EXPECTATIONS FOR THE ECONOMY HAS JUMPED NEARLY 50 WHICH HE CALLS AN EXTRAORDINARY SURGE EXPECTATIONS SEEM TO BE HIGHER EVEN IN PLACES WHERE THERE DOESN'T SEEM TO BE MUCH CAUSE FOR OPTIMISM WHEN MR CLINTON'S INAUGURAL COMMITTEE PUT OUT A CALL FOR PEOPLE ACROSS THE COUNTRY TO RING BELLS IN UNISON AT DUSK SUNDAY TO SHOW UNITY AND HOPE THE WORD REACHED THE LITTLE NORTH DAKOTA CITY OF WILLISTON ON THE SURFACE WILLISTON DOESN'T LOOK LIKE A PLACE WHERE HOPE SHOULD BE RINGING OUT THE AREA'S OIL BUSINESS HAS SLUMPED DRAGGING DOWN THE LOCAL ECONOMY JUST THIS MONTH A BIG FAMILYOWNED STORE THAT HAD BEEN A LOCAL FIXTURE FOR 56 YEARS CLOSED A DEPRESSING COLD SNAP HAS KEPT TEMPERATURES DOWN AROUND ZERO IN RECENT DAYS YET WHEN PAT UNKENHOLZ INVITED PEOPLE TO COME TO THE FAITH UNITED METHODIST CHURCH TO STAND IN THE COLD AIR ON THE CHURCH STEPS AND RING HAND BELLS 25 PEOPLE SHOWED UP GIVEN THE TOWN'S PROBLEMS SAYS MS UNKENHOLZ YOU HAVE TO CAPITALIZE ON SOMETHING THAT'S UPBEAT AND POSITIVE RAISED EXPECTATIONS ARE A TWOEDGED SWORD FOR MR CLINTON OF COURSE WITH HOPES SO HIGH THE FALL WILL BE ESPECIALLY PAINFUL IF ANTICIPATED IMPROVEMENTS DON'T MATERIALIZE OBVIOUSLY THAT PUTS THE PRESSURE ON MR CLINTON BUT VOTERS' APPARENT YEARNING FOR THE NEW PRESIDENT TO SUCCEED ALSO PUTS CONGRESS UNDER HEAVY DEMANDS TO COOPERATE AND NOT TO OBSTRUCT THE CLINTON PROGRAM BECAUSE CONGRESS ALREADY HAS BEEN WIDELY DISCREDITED AND DISPARAGED OVER THE PAST FEW YEARS MR CLINTON SHOULD HAVE LEVERAGE OVER LAWMAKERS AS HE PRESSES FOR PASSAGE OF AN ECONOMIC PACKAGE AND CHANGES IN THE HEALTHCARE SYSTEM ALL THIS REPRESENTS A STARKLY DIFFERENT SITUATION THAN THE ONE INHERITED IN 1977 BY THE MOST RECENT DEMOCRATIC PRESIDENT JIMMY CARTER WHEN HE ATTEMPTED TO WORK WITH A CONGRESS LED BY HIS OWN PARTY FAR FROM BEING UNDER SIEGE CONGRESS WAS THEN A CONFIDENT AND WELLREGARDED INSTITUTION WHOSE LEADERS CONSIDERED THEMSELVES THE TRUE MASTERS OF WASHINGTON AS A RESULT THEY OFTEN PUT THEIR OWN AGENDAS AHEAD OF PRESIDENT CARTER'S PLANS NOW THE PUBLIC SEEMS TO SEE CONGRESS AS PART OF THE PROBLEM AND THE NEW PRESIDENT AS THE SOLUTION THE PUBLIC HAS INVESTED AN AWFUL LOT IN NOT JUST BILL CLINTON'S SUCCESS BUT IN A HOPE THAT THE COUNTRY CAN SUCCEED SAYS PAUL MASLIN A DEMOCRATIC POLLSTER BASED IN SAN FRANCISCO THAT'S THE BIGGEST THING GOING FOR HIM THE PROBLEM FOR MR CLINTON IS EVIDENCE THAT HE AND HIS TEAM AREN'T PREPARED TO TAKE ADVANTAGE OF THEIR OPPORTUNITY DESPITE A RUSH IN THE PAST FEW DAYS TO FILL TOP JOBS THE CLINTON ADMINISTRATION WILL TAKE POWER WITH SIGNIFICANT GAPS IN THE GROUP THAT IS TO RUN THE GOVERNMENT EVEN WITH A FRIENDLY CONGRESS POISED TO APPROVE APPOINTMENTS IT WILL BE MONTHS BEFORE ALL MAJOR JOBS ARE FILLED THE NEW ADMINISTRATION'S HEALTH LEGISLATION IN PARTICULAR WILL TAKE WEEKS MORE TO FORMULATE LONGER DELAYS IN MOVING ON SUCH CRUCIAL ISSUES WILL DIMINISH THE MOMENTUM FOR MR CLINTON THE NEW ADMINISTRATION WOULD LIKE TO REPLICATE THE EARLY SUCCESS OF PRESIDENT REAGAN'S ADMINISTRATION WHICH CAME TO POWER AT A TIME OF SIMILAR HOPES FOR A SHARP CHANGE IN COURSE AND PROCEEDED TO RAPIDLY PUSH THROUGH AN AMBITIOUS LEGISLATIVE PROGRAM BUT THERE ARE SIGNIFICANT DIFFERENCES IN THE SITUATION NOW ONE VIRTUE OF MR REAGAN'S PROGRAM WAS THAT IT COULD BE SUCCINCTLY SUMMARIZED AND SOLD AS TAX CUTS AND DEFENSESPENDING INCREASES MR CLINTON'S PROGRAM IS FAR MORE COMPLEX AND DIFFUSE MOREOVER MR REAGAN HAD A CLEARER MANDATE HAVING WON WITH A COMFORTABLE 51 OF THE POPULAR VOTE IN THE THREEWAY RACE IN NOVEMBER MR CLINTON WON WITH JUST 43 OF THE VOTE AND WHEREAS MR REAGAN TOOK OVER JUST AS THE NATION'S TOP FOREIGNPOLICY PROBLEM THE IRAN HOSTAGE CRISIS WAS ENDING MR CLINTON TAKES OVER AMID A GROWING MILITARY CONFLICT WITH IRAQ AND A SECOND MILITARY OPERATION IN SOMALIA AS WELL AS PRESSURE TO INTERVENE IN THE WAR IN THE FORMER YUGOSLAVIA REAGAN HAD A CANVAS THAT WAS CLEARER SAYS KENNETH DUBERSTEIN WHO WAS WITH MR REAGAN AT THE OUTSET AND LATER BECAME HIS CHIEF OF STAFF IN CONTRAST IN THE LANDSCAPE AWAITING MR CLINTON HE SAYS THERE ARE MANY MORE GRENADES LYING AROUND FOR ALL THE GLOWING POLL NUMBERS VOTERS MAY BE EXPRESSING MORE A HOPE THAT MR CLINTON WILL SUCCEED THAN ANY FIRM CONFIDENCE THAT HE WILL ONE KEY FOR THE CLINTON TEAM WILL BE FIGURING OUT A WAY TO USE THE POWERFUL WHITE HOUSE COMMUNICATIONS AND IMAGERY MACHINERY TO KEEP THAT HOPE ALIVE AS IT TAKES ON TOUGH PROBLEMS MR MASLIN THE POLLSTER NOTES THAT FRANKLIN ROOSEVELT ACTUALLY WAS STILL STRUGGLING TO CONQUER THE DEPRESSION FOUR YEARS AFTER TAKING OFFICE YET RETAINED IMMENSE POPULARITY BECAUSE HE CREATED A FEELING THAT THE NATION WAS ADVANCING VOTERS AREN'T LIKELY TO WAIT FOUR YEARS BEFORE DEMANDING PROGRESS FROM MR CLINTON BUT IF HE CAN KEEP A SPIRIT GOING THAT'S MORE IMPORTANT THAN ANYTHING MR MASLIN SAYS 9301200040 930120 OTC FOCUS PROFITTAKERS END 4DAY RECORD STREAK BUT BANK STOCKS CONTINUE THEIR CLIMB BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER STOCK MARKET'S LONG RUN HIGHER ENDED TRIPPED UP BY PROFITTAKING BUT BANK STOCKS CONTINUED TO RACE AHEAD THE NASDAQ COMPOSITE INDEX WHICH CLOSED AT SUCCESSIVELY HIGHER RECORD LEVELS IN EACH OF THE PAST FOUR SESSIONS EASED 132 POINTS OR 019 TO 69681 BUT ADVANCING ISSUES STILL OUTNUMBERED DECLINERS 1405 TO 1251 TRADERS SAID RECENT HIGHFLYING AREAS INCLUDING TECHNOLOGY STOCKS TOOK THE BRUNT OF THE SELLING BORLAND INTERNATIONAL A SOFTWARE DEVELOPER WAS AMONG THE MOST ACTIVE ISSUES DOWN 2 3/8 TO 17 7/8 ON THREE MILLION SHARES AFTER A DISAPPOINTING EARNINGS REPORT ON THE BIG BOARD MEANWHILE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 067 POINT OR 028 TO 23966 AND THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 1892 OR 058 TO 325599 YOU HAD A LOT OF ACROSSTHEBOARD WEAKNESS SAID LEN HEFTER MANAGING DIRECTOR OF JEFFERIES & CO'S OTC DESK IN DALLAS SMALL STOCKS HAVE JUST RUN SO FAR THAT PEOPLE ARE JUST STOPPING TO TAKE A DEEP BREATH MR HEFTER SAID HE NOTED THAT BIOTECHNOLOGY STOCKS POSTED SIZABLE LOSSES FOR A SECOND DAY IN A ROW FOLLOWING NEWS MONDAY FROM CENTOCOR THAT SAFETY CONCERNS HAD PROMPTED IT TO HALT TRIALS OF ITS PRIMARY PRODUCT THE MALVERN PA COMPANY EASED 7/8 TO 5 3/4 ON 55 MILLION SHARES MONDAY THE STOCK PLUMMETED 10 7/8 OR 62 I WOULDN'T BE SURPRISED IF YOU SEE A LITTLE BIT OF FOLLOWTHROUGH SELLING TOMORROW SAID PATRICK DAVIS HEAD OF NASDAQ TRADING AT SALOMON BROTHERS THE RECENT GAINS HAVE LEFT THE MARKET READY FOR A TECHNICALBASED RETREAT HE SAID ALTHOUGH THE NASDAQ MARKET HAS REMAINED IMMUNE FROM SUSTAINED SELLING FOR MORE THAN THREE MONTHS MR DAVIS CAUTIONED THAT EVENTUALLY THE MARKET WILL FALL INTO MORE THAN A ONEDAY DIP WHETHER THIS IS THE DAY OR NOT I DON'T KNOW BUT STOCKS ARE STARTING TO FEEL TIRED SUCH ISN'T THE CASE FOR BANK STOCKS JAMES MCDERMOTT PRESIDENT OF KEEFE BRUYETTE & WOODS SAID STRONG EARNINGS BY SEVERAL BIG BOARDLISTED COMPANIES INCLUDING WELLS FARGO GENERATED TODAY'S OPTIMISM THAT STOCK SURGED 13 POINTS OR 15 TO 99 IN BIG BOARD TRADING IN ADDITION TO SOLID EARNINGS MR MCDERMOTT SAID MANY BANKS THIS QUARTER HAVE REPORTED A DECREASE IN NONPERFORMING ASSETS THIS TREND SHOULD ENABLE THE GROUP TO CONTINUE TO OUTPERFORM THE MARKET HE SAID ALTHOUGH THE PACE OF THE SHAREPRICE GAINS WILL MODERATE AMONG BIG GAINERS WERE PEOPLES WESTCHESTER SAVINGS BANK WHICH JUMPED 7 1/2 TO 30 3/4 IT RECEIVED AN OFFER TO BE ACQUIRED IN A TRANSACTION THAT VALUES THE HAWTHORNE NY CONCERN AT 30 A SHARE THE POTENTIAL ACQUIRERS INCLUDE CHARTWELL ASSOCIATES WHICH IS RUN BY THE FISHER FAMILY A LARGE HOLDER OF NEW YORK REAL ESTATE AND OIL HEIR GORDON GETTY ELSEWHERE SHARES OF MAF BANCORP A SAVINGSANDLOAN COMPANY JUMPED 1 1/2 TO 24 1/4 AFTER THE COMPANY POSTED NET INCOME OF 86 CENTS A SHARE FOR ITS SECOND QUARTER ENDED DEC 31 THIS COMPARED WITH PROFIT FROM OPERATIONS OF 55 CENTS A SHARE A YEAR EARLIER THE CLARENDON HILLS ILL COMPANY MORE THAN HALVED ITS PROVISION FOR LOAN LOSSES IN THE PERIOD TO 600000 BORLAND BASED IN SCOTTS VALLEY CALIF SLUMPED AFTER IT POSTED A LOSS OF 234 A SHARE FOR ITS THIRD QUARTER ENDED LAST MONTH COMPARED WITH NET INCOME OF 28 CENTS A SHARE A YEAR EARLIER REVENUE FELL TO 1043 MILLION FROM 1146 MILLION PARTLY BECAUSE OF PRICE COMPETITION IN THE SPREADSHEETSOFTWARE BUSINESS SYSTEM SOFTWARE TUMBLED 4 OR 18 TO 18 A MOVE THAT OBSERVERS ATTRIBUTED TO A WEAK FOURTHQUARTER EARNINGS REPORT THAT WAS RELEASED THIS MORNING BY INTERNATIONAL BUSINESS MACHINES CHICAGOBASED SYSTEM SOFTWARE SELLS PRODUCTS DESIGNED FOR IBM'S MIDRANGE COMPUTERS BACHMAN INFORMATION DROPPED 5/8 TO 4 1/2 THE BURLINGTON MASS COMPANY RECORDED A LOSS OF 49 CENTS A SHARE FOR ITS SECOND QUARTER ENDED LAST MONTH COMPARED WITH A PROFIT OF SEVEN CENTS A SHARE A YEAR AGO THE LATEST PERIOD INCLUDED A NONRECURRING CHARGE OF 22 CENTS A SHARE THE YEAR BEFORE INCLUDED A TAX BENEFIT OF TWO CENTS A SHARE MICROCOM LOST 5/8 TO 5 1/8 ITS EARNINGS FELL TO FOUR CENTS A SHARE IN THE THIRD QUARTER ENDED LAST MONTH FROM 11 CENTS A SHARE A YEAR EARLIER SALES BY THE NORWOOD MASS MAKER OF DATACOMMUNICATIONS PRODUCTS FELL TO 166 MILLION FROM 194 MILLION FLEET CALL ADDED 1 7/8 TO 27 PRUDENTIAL SECURITIES ANALYST JOHN L BAUER INITIATED COVERAGE OF THE STOCK WITH A BUY RATING HE EXPECTS SHARES OF THE RUTHERFORD NJ PROVIDER OF MOBILECOMMUNICATIONS SERVICES TO GAIN AS MUCH AS 20 ANNUALLY THROUGH 1997 FLEET CALL EXPECTS TO HAVE UPGRADED ITS SERVICES IN SIX MAJOR CITIES BY THEN CROWN RESOURCES FELL 5/8 TO 4 7/8 AFTER THE DENVER GOLD EXPLORATION CONCERN SUSPENDED TALKS THAT COULD HAVE LED TO A MERGER OR SALE OF THE COMPANY CROWN SAID IT WILL FOCUS INSTEAD ON OTHER LONGTERM STRATEGIES AND COSTCUTTING PROGRAMS SOFTWARE SPECTRUM ADVANCED 2 TO 28 EARNINGS AT THE GARLAND TEXAS COMPANY ROSE TO 48 CENTS A SHARE IN THE THIRD QUARTER ENDED LAST MONTH FROM 40 CENTS A SHARE A YEAR EARLIER SALES INCREASED TO 603 MILLION FROM 437 MILLION 9301200039 930120 WHO'S NEWS AT&T MAKES MANAGEMENT CHANGES AT ITS CONSUMER PHONE EQUIPMENT UNIT BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AMERICAN TELEPHONE & TELEGRAPH CO CHANGED THE LEADERSHIP AT ITS CONSUMER PHONE EQUIPMENT UNIT A SHIFT THAT ANALYSTS SAID MEANS AT&T WILL GET TOUGHER WITH JAPANESE RIVALS KENNETH M BERTACCINI THE GROUP'S PRESIDENT WAS NAMED SENIOR VICE PRESIDENT AND CHIEF QUALITY OFFICER A NEW POSITION HE WAS SUCCEEDED AT LEAST TEMPORARILY BY JOHN HANLEY VICE PRESIDENT OF AT&T'S DIVERSIFIED PRODUCTS GROUP AT&T SAID IT WAS STILL CONSIDERING WHETHER TO GIVE THE JOB PERMANENTLY TO MR HANLEY OR TO SOMEONE OUTSIDE AT&T MR HANLEY'S GROUP HAS BEEN PUSHING AT&T'S NEW VIDEO PHONE AND HAS RESPONSIBILITY FOR MARKETING A NEW LINE OF HANDHELD PERSONAL DATA COMMUNICATORS MR BERTACCINI WAS NO FAILURE AT THE CONSUMER PHONE UNIT BY MOST ACCOUNTS THE EBULLIENT 49YEAROLD AT&T VETERAN TURNED WHAT HAD BEEN A PERENNIALLY UNPROFITABLE GROUP INTO ONE OF THE INDUSTRY'S MOST PROFITABLE PHONE SUPPLIERS TO CONSUMERS AT&T DECLINES TO PROVIDE FIGURES ON THE PERFORMANCE OF THE UNIT BUT IT IS THE MARKET LEADER IN CORDLESS PHONES THE INDUSTRY'S HOTTEST SEGMENT JAPANESE SUPPLIERS ARE COMING ON STRONG HOWEVER AND MR BERTACCINI SAID HE AND AT&T THOUGHT IT WAS TIME TO BRING IN NEW LEADERSHIP THIS IS MY BABY BUT EIGHT YEARS IS AN APPROPRIATE RUN HE SAID HIS BOSS ROBERT M KAVNER AT&T'S GROUP EXECUTIVE OF COMMUNICATION PRODUCTS ADDED IT WAS A SHARED ASSESSMENT AT&T WHICH WON TWO MALCOLM BALDRIGE AWARDS FOR QUALITY IN THE PAST YEAR FOR ITS UNIVERSAL CREDIT CARD AND ITS TRANSMISSION EQUIPMENT WANTS MR BERTACCINI TO DRIVE A QUALITY IMPROVEMENT ACROSS ALL OF AT&T'S UNITS THIS WAS VERY ATTRACTIVE TO ME MR BERTACCINI SAID LET'S BRING AT&T TO WORLDCLASS QUALITY EVERYWHERE I EXPECT TO HAVE A LOT OF INFLUENCE BERGE AYVAZIAN AN ANALYST AT BOSTONBASED YANKEE GROUP SAID SONY'S GOING FARTHER INTO PHONES AND AT&T IS MOVING TO A FULL CONSUMER ELECTRONICS PORTFOLIO CASEY DWORKIN AN ANALYST AT PERSONAL TECHNOLOGY RESEARCH INC A WALTHAM MASS RESEARCH FIRM SAID AT&T'S SHARE OF THE CORDLESSPHONE MARKET SLIPPED BY NINE PERCENTAGE POINTS THIS YEAR TO 39 OF THE 17 MILLION UNITS SHIPPED SONY AND PANASONIC BRANDS PICKED UP THOSE POINTS HE SAID MR BERTACCINI DISPUTED THOSE NUMBERS BUT WOULDN'T PROVIDE ANY OTHERS A GROUP SPOKESMAN ACKNOWLEDGED SOME SLIPPAGE OF MARKET SHARE MR KAVNER SAID AT&T'S FUTURE IS IN MULTIMEDIA PRODUCTS WHICH ARE SOLD BY THE DIVERSIFIED PRODUCTS UNIT YOU'LL SEE US BRING MORE AND MORE PRODUCTS THAT BRING THE BENEFITS OF NETWORKS THAT ARE NOT JUST VOICERELATED INCLUDING GAMES EDUCATIONAL AND ENTERTAINMENT PRODUCTS WITH DIGITAL AUDIO QUALITY AT&T'S VIDEO PHONE SALES HAVE BEEN SLUGGISH LEADING THE COMPANY RECENTLY TO CUT THE PRICE BY ONETHIRD TO 1000 IN ADDITION MR DWORKIN SAID AT&T WAS LATE TO ANNOUNCE A 900MEGAHERTZ DIGITAL PHONE ALTHOUGH AT&T POINTS OUT THAT ITS NEW MODEL WILL HAVE A GREATER RANGE THAN PANASONIC'S MR KAVNER SAID THE CHOICE OF MR HANLEY 45 TO SERVE AS THE GROUP'S PRESIDENT MEANS WE'RE COMFORTABLE WITH HIM RUNNING THAT BUSINESS AND ADDED HE'S ONE OF OUR YOUNG TIGERS BUT COMPETING IN THE FUTURE MAY DEMAND A STRONG OUTSIDER AS THE CHIEF WE'RE VERY RESPECTFUL OF THE JAPANESE MR KAVNER SAID BUT WE'RE NOT INTIMIDATED BY THEM 9301200038 930120 GENERAL DYNAMICS FILES SUIT AGAINST ROCKWELL IN DISPUTE ON PATENT FALLS CHURCH VA GENERAL DYNAMICS CORP FILED A COPYRIGHT INFRINGEMENT LAWSUIT AGAINST RIVAL ROCKWELL INTERNATIONAL CORP ALLEGING THAT A ROCKWELL DIVISION MISAPPROPRIATED COMPUTER SOFTWARE FROM THE F16 FIGHTER IN ITS SUIT FILED IN FEDERAL COURT IN FORT WORTH TEXAS GENERAL DYNAMICS SAYS ROCKWELL'S DEFENSE ELECTRONICS DIVISION INTENDS TO MODIFY THE SOFTWARE AND USE IT IN A CONTRACT TO UPGRADE SOUTH KOREA'S F4 PHANTOM FIGHTERS GENERAL DYNAMICS CONTENDS THAT SUCH AN ACTION WOULD INFRINGE ITS COPYRIGHT ON THE SOFTWARE THE AIR FORCE HOLDS A LICENSE TO USE THE GENERAL DYNAMICS SOFTWARE WHICH WAS DEVELOPED WITH PUBLIC FUNDS GENERAL DYNAMICS SAYS THE F4 PROGRAM WILL BE MAINLY A COMMERCIAL CONTRACT BETWEEN ROCKWELL AND THE SOUTH KOREAN CONTRACTOR SAMSUNG AEROSPACE INDUSTRIES LTD WHAT WE'RE ARGUING ABOUT IS OUR LACK OF AUTHORIZATION TO ROCKWELL TO MAKE DERIVATIVES OF OUR COPYRIGHTED SOFTWARE SAID RON HENRY A WASHINGTON LAWYER FOR GENERAL DYNAMICS ROCKWELL SAID IT HAS FILED A MOTION TO DISMISS THE SUIT ON THE GROUNDS THAT GENERAL DYNAMICS' DISPUTE IS WITH THE US GOVERNMENT AND NOT ROCKWELL IT ADDED THAT THE F16 SOFTWARE WAS DEVELOPED WITH FEDERAL FUNDING AND THE US GOVERNMENT HOLDS THE LICENSE TO THE SOFTWARE IT THEREFORE HAS THE RIGHT TO PROVIDE THE SOFTWARE TO ROCKWELL FOR USE IN SUPPORT OF THE KOREAN PROGRAM 9301200037 930120 NORTHWEST AIRLINES TO DROP TAKE ALONG DISCOUNT FARES ST PAUL MINN NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC SAID IT WILL COMPLETELY DROP THE DISCOUNT FAMILY AND GROUP AIRFARES IT RECENTLY ESTABLISHED NORTHWEST SAID ITS TAKE ALONG FARES PROVED TO BE A FAILURE BECAUSE COMPETITORS CHOSE TO BROADEN OUR OFFER AND RISK INDUSTRY PRICING HAVOC THE NONREFUNDABLE FARES OFFERED DISCOUNTS OF AS MUCH AS 40 TO GROUPS TRAVELING TOGETHER AND REQUIRED A 14DAY ADVANCE PURCHASE AND SATURDAY NIGHT STAY THE ELIMINATION OF THE GROUP AND FAMILY FARE STRUCTURE ENDS AN EMBARRASSING EPISODE FOR THE CARRIER LAST WEEK JUST TWO DAYS AFTER NORTHWEST SAID IT WOULD OFFER THE NEW FARES IN ALL OF ITS 12000 MARKETS ON A PERMANENT BASIS THE CARRIER WAS FORCED TO BACKPEDAL AND NARROW THE OFFER TO JUST 400 MARKETS MAINLY NONSTOP FLIGHTS TO AND FROM ITS DOMESTIC HUBS OTHER CARRIERS LED BY DELTA AIR LINES EXPRESSED CONCERN THAT THE NORTHWEST OFFER WAS TOO CONFUSING AND SUBJECT TO ABUSE THOSE CARRIERS RESPONDED BY OFFERING A BROADER PROMOTION PRIMARILY IN NORTHWEST'S MARKETS WHICH RENDERED THE NORTHWEST OFFER INEFFECTIVE NORTHWEST SAID ALL OF THE TAKE ALONG FARES WILL BE REMOVED FROM COMPUTER RESERVATIONS SYSTEMS IN THE NEXT FEW DAYS IN A STATEMENT NORTHWEST'S EXECUTIVE VICE PRESIDENT FOR MARKETING MICHAEL E LEVINE SAID THESE FARES PROMISED TO STIMULATE MORE LEISURE TRAVEL BOOKINGS UNFORTUNATELY COMPETITIVE RESPONSE ELIMINATED THE POSSIBILITY OF REALIZING THE REVENUE ENHANCEMENT THAT WE AND THE INDUSTRY NEED